'We don't think it's wise to come out with a diesel based on the Tasman': Why Hyundai to abandon Kia's all-new ute for its American-flavoured 2026 Toyota HiLux rival

Hyundai looks increasingly likely to forge its own path when it comes to its now-confirmed mid-size ute, with the brand's Toyota HiLux and Ford Ranger rival to ditch diesel in favour of petrol and electrification to secure sales both in Australia and the USA.

The news follows confirmation that Hyundai and GM are collaborating on not one but two new pickup trucks, seemingly destined for the South and Central America, with GM to lead development on a small pickup, and a mid-size ute on par size-wise with our dual-cabs.

“Our combined scale in North and South America helps us to more efficiently provide our customers more of what they want—beautifully designed, high-quality, safety-focused vehicles with technology they appreciate,” José Muñoz, President and CEO of Hyundai Motor Company, said of the new partnership.

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And it would seem Hyundai's new local chief, Don Romano, expects that partnership to bear fruit for Australia, confirming that Hyundai's new ute would be sold in both Australia and the USA – the latter a market the Kia Tasman is not offered in.

"We're working at full speed on this. I mean, this is the highest issue, next to getting the tariff issue to be resolved," he said.

"And not just for Australia. I mean, Australia is a big part, but we also have a lot of other markets also. The US would be definitely one of them. They have a lot of trucks in the US. North America, Australia, other parts of Asia Pacific."

He said he's still "very much" looking at Hyundai's partnership with GM as a development avenue for his ute, he is also closely watching the success of plug-in hybrid utes like the BYD Shark 6.

2026 Hyundai ute render (Image: blog.naver.com)

"I mean, you can see what the Shark has done. I mean, look at what they've sold in the last three months, and I want you to look at HiLux and Ranger and what's come down in the last three months. 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. So, you know, I think it's an exciting time," he said.

One thing we know for certain is that it won't be diesel-powered, with Mr Romano declaring: "Australia doesn't need another diesel ute". Instead, petrol, petrol-hybrid or plug-in hybrid options are being explored.

"I think we have to look at options. And I can't tell you whether that's a PHEV, a HEV or a BEV, but I think those are options that have to be considered. And I think those are the areas that will give us an opportunity for expansion," he said.

"Our position here in Australia is that we don't need another diesel ute. But we do want Kia to be successful because right now we see a decline in total ute sales, and that could delay the development when people look at it and say 'is that really an important segment that we need to be in?' The answer is 'yeah'.

"We want to be able to point to our sister company to say look at the success that they've had. Just having an open bed, I think that's important.

"But for us, we just don't think it's going to be wise to come out with a diesel based on the Tasman body. So we want to look at different options, but if that takes an extra year and it's worth the time."

Finally, the executive suggested the Tasman's technology or platform might still be the path Hyundai walks, though he assures his ute will be very different.

"Taking the Tasman and turning it into a Hyundai? We would not be doing that. Could we use some of that technology that they have, or the base of it? Possibly," he said.