Hyundai is expanding its performance strategy as other automakers scale back their performance offerings. During the company’s annual CEO Investor Day presentation, Hyundai CEO José Muñoz announced plans for a new performance sub-brand positioned below the N lineup, while also confirming that Hyundai will continue adding N models.
Hyundai Plans a New Performance Line
Hyundai has not yet revealed the name of its new performance line, but Muñoz outlined how it will fit into the company’s lineup. The new models will sit below the track-focused N vehicles while offering more performance than the appearance-focused N Line models.
The new vehicles are expected to receive powertrains and other components from Hyundai’s N division. However, they will be designed primarily for everyday driving rather than track use. They are also expected to carry lower price tags, making the performance upgrades more accessible.
Hyundai has not identified which models will receive the treatment. The Elantra could be a possibility, given the company’s success with the full N version and its previous N Line models with higher-output engines than the base sedan.
A sub-N version of the Ioniq 5 could also be considered, while higher-volume models such as the Kona, Sonata and possibly Tucson could be candidates.
Hyundai Could Add More N Models
Muñoz also said Hyundai wants to significantly increase sales of its performance vehicles. The company sold about 20,000 N models last year and is targeting 100,000 annual sales by the end of the decade.
To support that goal, Hyundai plans to expand its N lineup to more than 7 models globally by 2030, up from 5 currently. A chart displayed during Muñoz’s presentation showed existing models alongside possible markets and planned offerings.
Among the upcoming N vehicles shown was an entry-level SUV with a front-engine, front-wheel-drive layout. More notably, another section included all-wheel-drive vehicles as well as vehicles featuring a front engine and rear-wheel drive.
Hyundai did not provide additional details about those vehicles. The presentation also left unanswered whether the company would use a traditional rear-wheel-drive sports car powertrain or choose all-wheel drive.
The body style also remains unclear, although the vehicle could take the form of a coupe, sedan or hatchback rather than an SUV.
Hyundai Says Performance Is Profitable
Performance vehicles can be expensive for automakers to develop because they are niche products. Adding a performance variant to an existing model can require a unique engine and transmission combination, certification, chassis updates and additional tuning.
In other cases, an automaker may need to develop a unique platform and powertrain for a niche sports car. Against that backdrop, Muñoz described Hyundai’s performance division and its expansion as “a profitable business, not just an emotional one.”
That profitability could support Hyundai’s plans to expand its performance offerings, including the new lower-priced performance line and additional N models.
Hyundai Targets More Accessible Performance
Hyundai’s existing N models have established a performance presence in their segments, while the planned sub-N lineup would provide another option for buyers seeking more performance without moving into the company’s track-focused N models.
Performance vehicles have also become more expensive, with even the Mazda MX-5 Miata starting above $30,000. Hyundai’s plans could therefore broaden its performance offerings while targeting more accessible pricing.
Muñoz’s statement that Hyundai’s performance vehicles are profitable also suggests that the company views the business as commercially viable, alongside its role as an emotional part of the brand.
