Hyundai Australia has walked back its promise to finalise plans for its first ute by the end of 2025, delaying the decision due to tariffs and shifting market demand.

Back in May, Hyundai’s local chief Don Romano told CarExpertthe Korean automaker would lock down plans for a new mid-size ute to rival the top-selling Ford Ranger and Toyota HiLux in both Australia and overseas markets by the end of this year.

However, the Hyundai Australia CEO was more circumspect when quizzed on the brand’s new pickup at the recent launch of the Ioniq 9 large electric SUV, citing a decline in demand for utes Down Under.

“Right now we see a decline in the total ute sales, and that could delay development,” said Mr Romano, who previously said a diesel ute based on the new Kia Tasman was less preferable than an all-new model with hybrid (HEV), plug-in hybrid (PHEV) or battery-electric (EV) power.

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Above: 2020 concept render

“I don’t think the world needs another diesel ute… so we want to look at different options. And if that takes an extra year, that’s worth the time.

“I can’t tell you whether that’s a PHEV, an HEV or a BEV, but I think those are options that have to be considered.

“Look at what the [BYD] Shark 6 [PHEV ute] has done. Look at what they’ve sold in the last three months compared to Hilux and Ranger… it’s almost unit for unit. So it does say that there is a market for a different technology out there, and that’s been our position.”

In Australia, sales of mainstream four-wheel drive utes (108,105 units) were actually up 0.1 per cent this year to the end of June, although 4×2 ute sales (11,613) were down 16.9 per cent.

Mr Romano also pointed to uncertainty around trade tariffs as a reason for Hyundai’s hesitance to commit to a new ute for global markets.