Hyundai Australia will not scrap its high-performance N models despite increasing pressure from the federal government’s New Vehicle Efficiency Standard (NVES).
In conversation with Daily SparkzHyundai Australia chief operating officer Gavin Donaldson said the tightening of emissions caps under the NVES regulations increased pressure and potential penalties, but the Korean brand had no plans to launch petrol-powered N cars such as the i20 N and i30 N, as Hyundai Europe had done.
“We believe there is a place for a high-performance internal combustion engine (in our product lineup),” Donaldson said.
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“Our N products probably cost about $5.1 million in penalties, and you know, if we take that out, we’re in bad credit… I don’t know (the competitors’) strategies, but for us we were at a deficit (versus NVES) just because we have a brand that we want to keep in Australia.”
Earlier this week, the Australian government released the first results of its New Vehicle Efficiency Standard (NVES), showing around two-thirds of brands exceeding their emissions targets.
Type 1 vehicles (passenger cars and SUVs) are subject to a limit of 141 g/km of carbon dioxide (CO2) emissions by 2025, while Type 2 vehicles – including vans, vans and large off-road SUVs such as the Ford Everest – are subject to a limit of 210 g/km.
Hyundai Motor Company reported a “preliminary emissions value” of 84,563 units, meaning it must trade credit units with another company by December 31, 2027 or risk a penalty of $50 multiplied by its final emissions value in February 2028.
For reference, the Hyundai i20 N claims a combined CO2 emissions figure of 157g/km even with Euro 6-certified powertrains, while the larger i30 Hatch N with its Euro 5-certified powertrain claims 197-199g/km.
This year the NVES CO2 limit for Type 1 vehicles will be lowered to 117g/km, meaning the petrol N range will face even higher penalties – although the all-electric Ioniq 5 N and upcoming Ioniq 6 N can offset this somewhat with their volume-rich, zero-emission powertrains.
In September, at its 2025 CEO Investor Day, Hyundai outlined its plans to expand its product lineup through 2030, including expanding the N Division lineup to seven models, including the first hybrid model.
Currently, the Hyundai N range includes several different models worldwide, including the i20 N, i30 Hatch N, Elantra N (here i30 Sedan N), Ioniq 5 N and Ioniq 6 N. The former Veloster N, which was available in South Korea and North America, has been discontinued.
A new-generation Elantra N/Avante N/i30 Sedan N is believed to be in the works as part of the next-generation sedan range – possibly due to be unveiled later this year – while the sixth and seventh nameplates set to get the N treatment are still unknown.
There have long been rumors of an N-branded SUV, possibly based on the Tucson, while the Kona compact crossover offered an N version in its previous generation.
Another potential candidate for the Hyundai N treatment is the upcoming Ioniq 3 compact EV, which was shown at the Munich motor show last year as the Concept Three.
Let us know in the comments if you’re excited about Hyundai going for the N-Series in Australia!
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