Diesels, not hybrids, sought by Kiwi buyers

20 March, 2007
Immediate release

Diesels, not hybrids, sought by Kiwi buyers

Hybrid cars are more hot air than showroom sales. That’s the word from Hyundai.

Despite announcing that the fast-rising South Korean brand will begin selling hybrid vehicles in the next year or two, Hyundai in New Zealand cautions not to read too much into the trend.

“While there’s lots of noise about hybrids right now, the marketplace experience is that people simply don’t buy these vehicles in any real numbers,” says the Managing Director of Hyundai Automotive NZ, Philip Eustace.

“You only have to look at the sales figures in the New Zealand market, so far this year to February there have been 1,198 diesel passenger vehicles sold and only 120 hybrids.

“The reality is that hybrids work only if a government supports them with tax incentives.

“That’s because manufacturing of hybrid vehicles adds significant cost which must be passed on to the customer but which can be minimised with some kind of tax break.

“There are tax incentives in Japan and the USA, as an environmental gesture, but even then it’s not enough to bring the selling cost back to par with conventional vehicles. And still hybrids are not huge sellers in those markets.

“Here in New Zealand there’s no sign of any such incentive or tax break, indeed the current government is noted for its aversion to such policies.
“Interestingly that’s also the case in South Korea where the government has refused to offer any incentives despite strong lobbying.
“Hyundai has built hybrids since 1994 and right now has more than 150 hybrid vehicles on test in a pilot programme with the Korean Ministry of the Environment and major public utilities.”
But Mr. Eustace explains the question is a complex one for governments.

“Hybrid cars and especially SUVs are still pretty rare. Full hybrids that can actually be driven on pure battery power alone, compared with mild hybrids that just shut off the petrol engine when the vehicle isn't moving, are rarer still.

“On top of that there’s a very serious question mark over the environmental impact of hybrid batteries, as well as the huge amount of energy required for the initial manufacturing process of hybrids. Furthermore, for recycling they need to ship the unit back to country of origin, adding an entire new transport component with the added impact that makes on the carbon footprint of the whole exercise.

“Remember the noises the Europeans are making about food miles, penalising New Zealand for the environmental cost of transporting food products.”

And Mr. Eustace points out the hybrid questions don’t end there.

“Right now in New Zealand hybrid-engine vehicles make absolutely no contribution to road upkeep costs while they’re running on the battery.

“While petrol and especially diesel vehicle drivers are paying their way, hybrid owners are not paying their share.

“That makes a mockery of the Auckland mayor’s recent suggestion of special parking places for hybrids.

“Hyundai will certainly offer hybrids at home and around the world, but we as a brand are very cautious about their long-term future,” says Mr. Eustace.

“The trend in New Zealand right now is diesels, end of story.

“That’s what New Zealanders are increasingly looking for, as the answer to fuel economy and sustainability issues.

“That’s the reason we have extended the range of diesel models virtually right across our lineup, introducing several Hyundai developed engines including the 1.5 CRDi engine in the Getz and Accent, 2.0 CRDi engine in the Sonata and Tucson, and 2.2 CRDi engine in the Santa Fe. All of which comply with EURO IV emission requirements.

“The experience of our dealers is that we are meeting a definite need. People are coming into the dealerships looking for diesel-powered vehicles, both cars and SUVs.

“When choosing between petrol and diesel, the modern diesel engine makes sense to many New Zealanders,” Mr. Eustace says.

• Hyundai is on a meteoric rise in New Zealand with almost 400 percent growth in four years and numerous new locations among its 23 dealerships. The brand has been imported into New Zealand by the Giltrap Group for the past 25 years.
• Worldwide Hyundai was the sixth largest automaker last year, selling in 193 countries and employing 50,000 people. Forty years old, Hyundai has targeted customer satisfaction as its 2007 keynote, part of the brand's overall aim to become global quality leader.
• Hyundai is a committed sponsor of sports and cultural organisations in New Zealand and worldwide. See www.hyundai.co.nz

• For free broadcast-standard and streaming quality video content about the new i30 Elantra please log onto www.thenewsmarket.com/HyundaiMotor. You can download hi-resolution photos as well as preview and request broadcast-standard video which will be delivered digitally or by tape. Registration and video is free to accredited media.
• For further information about Hyundai vehicles in New Zealand, including high resolution images and an archive of press releases, log onto the dedicated Hyundai Media website at www.hyundai.co.nz/media

Ends

© Scoop Media