In a surprising turn of events, Hyundai Motor India has officially discontinued its flagship internal combustion engine (ICE) SUV, just days after introducing the new-generation Hyundai Venue. This move has created quite a buzz in the automotive world, especially since the discontinued model represented Hyundai’s top-of-the-line offering in its ICE portfolio.
While many were expecting Hyundai to continue strengthening its large SUV lineup, the decision suggests a strategic shift toward compact models, hybrid systems, and electrification. Let’s explore why Hyundai made this decision, what it means for its SUV range, and how it aligns with the brand’s global plans.
The Sudden Decision — What Really Happened?
According to internal sources and industry reports, Hyundai has decided to phase out its flagship ICE SUV in India and several global markets. Although the automaker hasn’t officially named the model, it’s believed to be one of the company’s larger premium SUVs that sat above the Creta and Tucson in the hierarchy.
This move comes right after the launch of the new-gen Venue, signaling a deliberate repositioning of Hyundai’s SUV portfolio. The company appears to be realigning its product roadmap to focus on:
- Compact and mid-size SUVs that dominate sales volume in India.
- Next-generation hybrid and electric models that comply with tightening emission standards.
- Platform rationalization to reduce production complexity and improve profitability.
In short, Hyundai is making space for its next wave of electrified SUVs, including EVs based on the Ioniq platform and hybrid versions of popular models.
Hyundai’s ICE SUV Legacy — From Santafe to Tucson
Hyundai’s journey with large ICE-powered SUVs in India has been both impressive and challenging. Over the years, the brand has offered models like the Hyundai Santa Fe, Tucson, and Palisade in select markets — all praised for their premium quality and features but often struggling to achieve high volumes in India’s price-sensitive market.
While vehicles like the Creta and Venue became household names, Hyundai’s larger ICE SUVs faced challenges due to:
- High pricing compared to rivals from Toyota, Mahindra, and Jeep.
- Limited localization, which increased costs.
- Shifting consumer demand toward compact SUVs with better fuel efficiency.
- Rapid rise of EV adoption and hybrid demand in the ₹20–35 lakh segment.
So, even though the flagship SUV embodied luxury and performance, it couldn’t match the market’s changing dynamics.
The Timing — Why Right After the New-Gen Venue Launch?
Hyundai’s decision to discontinue its top ICE SUV right after the launch of the new-generation Venue isn’t coincidental — it’s a part of a broader strategy. The Venue has been one of Hyundai’s biggest success stories, and its new-gen version represents the automaker’s future design and technology philosophy.
Here’s why the timing makes sense:
- Shifting focus to high-volume models:
The Venue, Creta, and Alcazar are Hyundai’s key pillars in India. Focusing on these ensures stronger sales and brand visibility. - Venue’s success sets a new direction:
The new Venue features upgraded safety, connected tech, and mild-hybrid options — showing Hyundai’s intent to modernize its core lineup. - Reducing overlap in the lineup:
The flagship ICE SUV and the Tucson often overlapped in price and purpose. Removing one helps streamline offerings. - Preparing for EV rollout:
Hyundai plans to launch multiple electric SUVs by 2026, and phasing out large ICE models frees up production and R&D resources.
A Look at the Possible Replacement — Electrification on the Horizon
Industry insiders suggest that Hyundai’s move is part of a transition strategy to replace its premium ICE SUVs with next-generation EVs. Some of the upcoming models expected to fill the gap include:
- Hyundai Ioniq 5 facelift (2025) — Already a success in India’s premium EV segment.
- Hyundai Ioniq 7 — A large electric SUV expected to rival the Kia EV9 and Toyota bZ4X globally.
- Electric Tucson or Creta EV — Set to debut in 2025–26, aimed squarely at Indian buyers.
The company is also investing heavily in local EV production and battery sourcing, which will make future models more affordable.
This shift highlights Hyundai’s intent to reduce reliance on ICE powertrains and embrace cleaner mobility, in line with India’s growing focus on sustainable transport.
Consumer Reactions — Mixed but Understanding
The news of discontinuation has sparked mixed reactions among buyers and enthusiasts. Some are disappointed that Hyundai is letting go of its premium ICE SUV, while others see it as a necessary step forward in adapting to changing market realities.
Auto enthusiasts have pointed out that this move also aligns with global trends, as major automakers like Toyota, Ford, and Honda are gradually downsizing their ICE portfolios to prioritize hybrids and EVs.
In India, where fuel efficiency and running costs play a crucial role, EVs and hybrids are becoming more appealing — and Hyundai is clearly aligning itself with this sentiment.
Hyundai’s Strategy Going Forward
With this discontinuation, Hyundai’s roadmap becomes much clearer. The automaker is repositioning itself with a three-pronged strategy:
- Strengthening the Core Lineup
Models like the Venue, Creta, and Alcazar will remain the backbone of Hyundai’s SUV range. These models will continue receiving regular updates and new powertrain options. - Accelerating Electrification
Hyundai plans to introduce multiple EVs across segments by 2026. The Creta EV will likely debut in 2025, followed by the Ioniq 5 facelift and Ioniq 7. - Exploring Hybrid Powertrains
With competitors like Maruti Suzuki and Toyota seeing success with hybrids, Hyundai is also evaluating hybrid systems for the Creta and Venue.
This means Hyundai isn’t abandoning SUVs — it’s simply future-proofing them.
Impact on Hyundai’s Market Position
Even though discontinuing a flagship model may seem like a setback, it’s a strategic move that could strengthen Hyundai’s long-term position in India.
- Short-term impact: A small void in the premium SUV segment.
- Long-term impact: Better alignment with consumer demand and EV infrastructure growth.
Moreover, by focusing on high-demand models and electrification, Hyundai can streamline operations, reduce production costs, and improve profitability — crucial in a highly competitive market.
Global Parallels — Hyundai’s EV-First Approach
Hyundai’s decision isn’t limited to India. Globally, the company has been making similar moves to phase out ICE variants of larger SUVs and focus on EVs and hybrids. For instance:
- In Europe, Hyundai has discontinued several diesel models.
- In the U.S., the brand is prioritizing the Ioniq EV lineup.
- In South Korea, production of certain ICE models is being reduced to make room for EV assembly lines.
These steps underline Hyundai’s commitment to carbon neutrality by 2045 and its ambition to become a leader in the global EV market.
Final Thoughts — The End of an Era, Beginning of a New One
Hyundai’s decision to discontinue its flagship ICE SUV right after launching the new-gen Venue marks a clear turning point in its Indian strategy. It’s not about abandoning its premium customers — it’s about evolving with the future of mobility.
As the automotive landscape shifts toward electrification, efficiency, and technology, Hyundai is smartly positioning itself for what comes next. The new Venue represents the present — practical, tech-driven, and efficient — while the upcoming Creta EV, Ioniq 5 facelift, and future electric SUVs represent the future.
For car enthusiasts, this moment symbolizes both an end and a beginning — the end of the ICE flagship era and the dawn of Hyundai’s electric revolution.