Hyundai is accelerating plans to end production of its Santa Cruz compact ute, shifting focus towards a larger, body-on-frame truck expected before 2030. The move comes as sales of the Santa Cruz lag significantly behind competitors like the Ford Maverick, prompting Hyundai to reduce production and free up factory capacity.
Santa Cruz Production to Halt Sooner Than Expected
Originally slated for discontinuation in the second quarter of 2027, Hyundai is now speeding up the end of Santa Cruz production. Current output will be halved as the company works to lower inventory levels. Hyundai USA insists the ute’s lifecycle plans remain unchanged, but industry sources report otherwise.
Shift in Focus: Mid-Size Truck Development
The decision to retire the Santa Cruz is not a sign of retreat from the truck market, but rather a strategic move to prepare for a more substantial offering. Hyundai will internally develop a mid-size, body-on-frame ute designed to compete directly with established rivals like the Toyota Tacoma, Ford Ranger, and Chevrolet Colorado. The company is also considering a potential SUV derivative based on the same platform, aimed at challenging the Toyota 4Runner.
Why This Matters: U.S. Truck Market Dynamics
The Santa Cruz, launched in 2021, represented an unconventional approach to the ute segment, blending unibody construction with a pickup bed. However, despite its novel design, it has failed to achieve the same sales success as the more traditionally styled Ford Maverick.
- In 2025, the Maverick sold 155,051 units, ranking as the 19th most popular vehicle in the U.S.
- The Santa Cruz, in contrast, moved just 23,962 units, placing it 141st in sales.
This disparity highlights the importance of aligning product strategy with market preferences. While the Santa Cruz offered a unique proposition, its higher price point and distinct design did not resonate as strongly with buyers compared to the more affordable and familiar Maverick.
Implications for Global Markets
It remains unclear whether the new American ute will be made available in markets like Australia, where Hyundai has long sought a body-on-frame pickup. The company’s shift towards a more conventional truck design suggests a broader strategic adjustment to better capture market share in the competitive North American truck segment.
Hyundai’s move underscores the critical role of volume sales and market alignment in the automotive industry. The company’s decision to discontinue the Santa Cruz early is a calculated step towards securing future success in the lucrative mid-size truck category.
