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According to Motor1, Hyundai is evaluating a major shift in its powertrain strategy that could see the company move several mainstream models to hybrid-only configurations. This development comes as Toyota has already begun aggressively phasing out gasoline-only options for many of its high-volume vehicles, creating a successful roadmap for other manufacturers to follow.
The influence of Toyota's market dominance
Toyota recently implemented a strategy where several key models—including the Camry, Land Cruiser, RAV4, Sequoia, and Sienna—are now available exclusively with hybrid powertrains. This transition has proven highly effective in the marketplace, prompting competitors to take notice. Hyundai Australia CEO Gavin Donaldson acknowledged this trend, stating that moving away from internal combustion engines (ICE) toward hybrids and electric vehicles is becoming inevitable.
Donaldson noted that while some ICE products will remain in the portfolio for now, the shift is a logical progression. "Would we consider making our mainstream cars more hybrid? I think that's inevitable," Donaldson told CarExpert. Currently, Hyundai maintains a diverse range of powertrains, including hydrogen fuel cells and plug-in hybrids, but the focus is shifting toward streamlining the core lineup.
Identifying the transition targets
While Hyundai does not currently offer any hybrid-only models, its current inventory features only four vehicles that are strictly internal combustion: the Kona, Elantra N, Santa Cruz, and Venue. Analysts suggest that while small, affordable cars might retain gasoline engines to remain price-competitive for budget-conscious buyers, larger models are prime candidates for a hybrid-only status.
The transition would likely target high-demand segments such as:
- Mid-size and full-size SUVs like the Santa Fe and Palisade
- Sedans such as the Sonata
- High-volume crossover models
Economic and technical feasibility
The move toward hybridization is supported by the fact that hybrid systems offer improved fuel economy with minimal added complexity for the consumer. Aside from heavy-duty trucks, enthusiast performance cars, and entry-level economy vehicles, there are few remaining reasons to favor pure gasoline engines in 2026. For most consumers, the increased cost of a hybrid powertrain is quickly offset by long-term fuel savings and enhanced power delivery compared to traditional ICE counterparts.
By adopting this strategy, Hyundai aims to align with evolving consumer preferences while maximizing the efficiency of its manufacturing footprint. This shift marks a significant step toward a more electrified future for the global automotive landscape.