Disappointing sales performance has led Hyundai to kill the compact unibody truck early. After just one generation, the Santa Cruz pickup is reportedly being phased out sooner than planned because buyers largely shrugged and walked past it to rival dealerships instead. The idea sounded great on paper, but reality hit hard as the Santa Cruz struggled to find a clear identity, landing somewhere between lifestyle toy and actual truck, without fully satisfying fans of either.
Even the introduction of a rugged XRT model for 2024 didn’t really help. Meanwhile, the Ford Maverick quietly ate its lunch, racking up 155,000 registrations last year, 18 percent more than in 2024. In the same period, Santa Cruz sales fell 20 percent to just 25,500.
Dealers reportedly ended up with months of unsold inventory sitting on lots, which is never a great sign. Hyundai responded by cutting production by roughly half this quarter and is now preparing to wind it down entirely ahead of the original Q2 2027 target. This shift will free up factory space in Alabama for more Tucsons, which people are actually lining up to buy.
The company has already confirmed that it’s working on a new midsize truck with a US launch targeted for 2029, adopting rugged body-on-frame construction aimed squarely at heavy hitters like the Toyota Tacoma and Ford Ranger. This upcoming model will not be related to Kia’s fugly Tasman. CEO José Muñoz has even hinted that a rugged, off-road SUV could be added to the lineup, built on the same pickup platform to compete with the Toyota 4Runner and Ford Bronco.
That shift upwards makes sense as real trucks still dominate the US market, and buyers often want towing, payload, and rugged vibes over clever design flourishes. Bigger trucks also deliver bigger margins for automakers. The question is whether round two will finally land a punch.
This decision by Hyundai to discontinue the Santa Cruz pickup highlights the importance of understanding consumer demand in the automotive market. It's clear that buyers prefer traditional truck designs with rugged capabilities over more lifestyle-oriented options, which is why Hyundai is shifting its focus towards more robust models like the new midsize truck and potential off-road SUVs.
