Hyundai shifts toward value-focused U.S. car buyers

NEW YORK — American car buyers, long drawn to the biggest, best-equipped model on the lot, have turned cautious, and nowhere more so than on price. 

That shift is exactly where Hyundai has made its inroads, said Jeff Rosen, chief executive of Rosen Automotive Group, a Wisconsin-based dealership group, and chairman of the Hyundai National Dealer Council. 

“Economic uncertainty has made consumers more pragmatic,” Rosen said during an interview with the Korean press on Friday, a day after the new Tucson world premiere in New York. “They’re looking beyond the purchase price and calculating the total cost of ownership, including maintenance, repairs, fuel efficiency and how long the vehicle is likely to last. They want affordability, but they also want genuine, long-term value.”

“Hyundai remains focused on delivering vehicles at accessible price points without asking customers to compromise on the quality, safety, technology or design they expect,” he added. “Customers increasingly recognize that Hyundai delivers attainable innovation, advanced technology, connectivity and features that are accessible to a broad range of buyers.”

That pragmatism is one reason Hyundai has aimed squarely at that demand, with the spacious family SUVs Americans want most.

Hyundai's best-selling model is the Tucson compact SUV, which accounts for 24 percent of all the vehicles Hyundai sold in the country last year. It is also why Hyundai chose New York for the Thursday world premiere of the latest Tucson, the model's first full redesign in six years.

“The Tucson appeals to everyone from young adults and growing families to empty nesters because it offers the flexibility and practicality they need in their daily lives,” the chairman said. “Customers who are looking for that combination of size, design, capability, innovation and affordability continue to be drawn to the Tucson — and we expect the all-new model to attract even more of them.”

Rosen also pinpointed that Hyundai's momentum rests on the explosive growth of its hybrids. Sales of the Korean automaker’s hybrids have surged 54 percent so far in 2026 and now make up 27 percent of its U.S. sales. Electrified vehicles — hybrids and EVs combined — account for 33 percent.

Building on that demand, Hyundai plans to introduce the Santa Fe EREV in the first half of next year. An EREV, or extended-range electric vehicle, is driven by electric motors but carries a small gasoline engine that serves only as a generator, recharging the battery to extend the driving range.

Hyundai says its system differs from conventional EREVs in that, using high-performance batteries developed in-house, it delivers the power and performance of a full EV with less than half the battery capacity of a comparable battery-electric model.

“Hyundai can significantly reduce production costs, and that creates the opportunity for competitive pricing against leading midsize SUV rivals,” Rosen said.

“The Santa Fe EREV will also be built locally in the United States, supporting a stable supply chain for the U.S. market and potentially positioning the model to qualify for federal EV tax incentives.” 

Hyundai aims to launch more than 100 new and face-lifted models by 2030, and 58 of them are for the North American market. 

BY SARAH CHEA   [[email protected]]