Highlander highlight of Hyundai onslaught

HYUNDAI'S product onslaught over the next eight months will be capped off by the launch of the Highlander four-wheel drive at next year's Melbourne motor show.

The newcomer will compete against the likes of the Mitsubishi Challenger and Jeep Cherokee in the mid-size off-roader segment.

Designed in-house by Hyundai, the Highlander replaces the Mitsubishi-based Galloper in its home market.

Built on an all-new monocoque chassis, the mud-raker will use either the 3.0-litre V6 that powers the Grandeur or a new 3.5-litre unit.

"We will make a decision on which engine to use after we see the performance figures," Hyundai Automotive Distributors managing director Mr Doug Croker says.

But opting for the 3.5-litre engine may result in a delay as it uses a different driveline and is scheduled to come on stream later.

Asked about pricing, Mr Croker said: "Ideally, we would like Highlander to start where the Santa Fe (compact off-roader) finishes." This indicates a starting price around $35,000.

"Our aim is provide generous specification levels rather than be the cheapest contender." Mr Croker hopes the Highlander will achieve similar sales volumes to the Mitsubishi Challenger, which has been averaging 180 monthly sales since its launch.

But it is the smaller Santa Fe that will be the volume seller and Mr Croker is confident it will be a genuine rival to the segment-leading Honda CR-V and Subaru Forester.

Due on sale in early October, it will be offered initially only with a 2.7-litre V6 engine. A 2.4-litre, four-cylinder unit will come on stream early next year.

But Mr Croker warns that huge overseas demand for Santa Fe - particularly in the US - may limit volumes.

Even in Australia, a fleeting two-second glimpse of the Santa Fe in Hyundai's branding ad on television has prompted 350 inquiries from prospective buyers.

The Sante Fe's launch will be preceded by the introduction of the Lantra replacement in late September.

In line with Hyundai's global naming policy, the Lantra successor will be badged Elantra.

Hyundai Australia wanted to name the original car as such but, at the time, Mitsubishi had a license on the Elante name for a variant of the Magna - and Elantra was thought to be too close. Mitsubishi now has no objections so the path has been cleared for Hyundai.

Mr Croker concedes the recent launch of the $19,390 Pulsar will put pressure on Elantra, but he says Hyundai's contender will be equal to the challenge.

Although closer in size to the Vectra than the Corolla, the newcomer will retain its sub-$20,000 starting price.

Meanwhile, the onset of post-GST pricing has not led to a spurt in sales, according to Mr Croker.

"People are still reconfiguring their mindset on the value of cars," he says.

"Buyers are adopting a wait and see approach and asking questions rather than buying cars.

"Those who get paid monthly are still waiting to see their pay cheques to see how much extra they have to spend."