Articles by Andrew Chesterton

Hyundai has sounded the alarm about what will happen to customer warranties, and who will hold the liability, when car companies inevitably fail in Australia's increasingly crowded and competitive market.That's the stark warning from Hyundai Australia CEO, Don Romano, who said the industry consensus was that some brands, legacy and newcomer alike, would fail in Australia's cut-throat car market, with the senior executive warning that honouring warranties could then become a question mark for owners."The question is are all of these brands going to survive? And I think the general consensus from every manufacturer is no," Mr Romano says."The question then becomes when they leave, who holds the warranty liability? And I think that's an issue that doesn't get too much press, but I think it's a worry that some of the big dealer groups that are holding onto a number of brands that may or may not be around – and I'm not talking Chinese brands, it could be any brand."I've been involved with brands that have left North America, but they still have the resources in their global business to protect the warranty. I wonder sometimes about some of the new brands – is the government looking at that? Do they realise that if they leave, some of these dealers are going to have to take care of the customers out of their own pocket?What happens to a customer's warranty in Australia appears to largely depend on the infrastructure left behind. When Opel failed in Australia, Holden honoured remaining warranty. Same too for Holden, which was covered by General Motors. Customers of Citroen and, most recently, Peugeot will have their warranties covered by the broader Inchcape Group, which was the importer for both of the French brands.But if no infrastructure remains, then it would appear to be the distributor, and then the dealer group, left holding the liability."I think that's a concern because a lot of those dealer groups own our facilities and represent us, so you know this could have implications beyond just the brands that may leave, but even the stronger brands because they're all tied together," Mr Romano says.It's a thought echoed by the Australian Automotive Dealer Association (AADA), which has today released a response to a major review into Australian Consumer Law and the Franchising Code of Conduct.The wide-ranging review, conducted by Emeritus Professor Jenny Buchan and commissioned by the AADA, identified five key themes, including "a growing disconnect between legal responsibility and operational control in the resolution of manufacturing defect claims, practical shortcomings in the operation of manufacturer indemnification arrangements, uncertainty surrounding the application of key ACL concepts, inefficiencies within existing dispute resolution processes, and limitations in the Franchising Code’s ability to address power imbalances.The review also specifically explored brands exiting the Australian market, and calls for a policy framework that demands OEMs honour warranty, repair, parts and buy-backs for a defined period, lasting as long as the warranty on the last-sold vehicle. It also calls for EV-specific funding for wound-up companies, as well as regulatory approval before an OEM can exit the market.“For most Australians, purchasing a car is the second-largest financial commitment they will make. Consumers have every right to expect a fair, timely and efficient process when faults arise,” says James Voortman, CEO of the AADA.“Multinational manufacturers must take greater responsibility for the products they import in Australia and be active participants in resolving consumer disputes.”

Toyota in Australia has laid out its vision for its GR performance brand, assuring the range will grow as it looks to tap "performance hybrids" as the power source that will propel it into the future.The seeds have already been sown with the bonkers GR GT, which pairs a 4.0-litre twin-turbo V8 with a hybrid system for total system outputs of more than 478kW and 850Nm. Its top speed is in excess of 300km/h.The GR GT is expected to launch in 2027, but will also form the blueprint for Toyota's other GR models, with hybridisation coming to next-gen models."Efficiency hybrid is about matching existing performance, but has a significant improvement in fuel consumption. Performance hybrid is saying we take an existing ICE powertrain, and then the way to get a lot more power with effectively the same fuel efficiency is electrification on top. GR GT is an example," says Ray Munday, the Senior Manager Product Planning and Pricing at Toyota in Australia."A large, powerful ICE engine plus electrification is where we see looking forward."The concept of performance hybrids electrifying the future of GR ties neatly with reports out of Japan that the brand will launch a new hybrid engine in its Yaris GR and Corolla GR hatchbacks, with Best Car reporting the plan has been in place since 2024.At a 'multi-pathway workshop' that year, Toyota reportedly unveiled a petrol-electric engine that would redefine the brand's performance cars. The 2.0-litre turbo-hybrid set-up will reportedly produce 294kW and 500Nm, an uplift over the current GR Yaris’ 221kW and 400Nm."The GR side of the business is extremely exciting," says Toyota Australia VP of Sales, Marketing and Franchise Operations John Pappas. "Going forward into the future, GR is going to play a bigger role across the family of Toyota Motor Corporation. We haven't determined how that looks or feels, and what that's all going to mean for what products and all the rest of it going forward. But it is very exciting in terms of what the company's planning to do with GR."While he wouldn't be drawn on details, Mr Pappas confirmed that meant the lineup would grow beyond the GR Yaris and GR Corolla in Australia as the performance sub-brand takes on new importance."Going forward globally, we've obviously articulated the role of GR about performance and really learning from motor sport and performance testing. So we're very excited by that here. And we're working out how that's going to look for Australia."

The popular Hyundai Venue's immediate future is in doubt in Australia as the brand faces increasing NVES pressure to rationalise its lineup.A new Venue has been revealed in India, but is unlikely to launch in Australia, with the brand here instead waiting for an all-electric version to better fit into its local lineup."I honestly believe we're still going all-electric eventually. I think the world's going electric, and if we look at the Venue right now we have to consider the impacts on the NVES liability and requirements," says Hyundai Australia President and CEO, Don Romano."So the decision's not made at this point, but I do believe longterm we're going to be moving more and more to electrification electric vehicles, or very low emission HEVs and PHEVs and that type of technology versus just straight combustion engines."That decision's not made, but I don't see a long term in the current configuration for the Venue."The new Venue was revealed in India with some critical changes to better appeal to that market. It's smaller than the vehicle currently sold in Australia, and gets a significant tech and feature upgrade.Critically, the engine choices are a 1.2-litre naturally aspirated petrol, 1.0-litre turbocharged three-cylinder engine or a 1.5-litre turbo diesel engine – none of which carry the electrification demanded of Hyundai in Australia.But while that car looks sure not to arrive, and Hyundai says the model currently sold here won't continue "long term", hope is not lost for the Venue nameplate to live on with electrified power in the future."The brand (Venue)? The brand might stick around, but it's not going to be the same Venue," Romano says.It will leave a gap in Hyundai's portfolio, with the brand's smallest SUV contributing around 3000 sales to Hyundai's total so far this year.

Toyota in Australia has detailed its comparatively sluggish first-half sales results, saying its internal delivery issues, rather than competition from newcomer Chinese brands, is holding it back.Last month saw a staggeringly close – and, over the past 20 years, unheralded –brawl between Toyota and BYD for top spot on Australia's sales ladder, with the Chinese brand finishing just 243 sales short of Toyota's 19,124 deliveries.But Toyota insists it isn't feeling the rush of new Chinese brands is hurting orders, instead saying a strong second half of the year is coming as production frees up."I don't mean that in a disrespectful way," says Toyota's Vice President, National Sales, Marketing and Franchise Operations, John Pappas. "We respect all our competitors and what they do."When you've got long lead times, at the end of the day, you need to be able to have a realistic short lead time for your customer. That's what we've been focused on. Because if we can do that, we know our loyalty is very, very high."We respect that with our customers, we never take that for granted, but we've really been focused on trying to reduce that lead time for our customer, together with our TMC colleagues. because we know that competition's fierce."We know that there's all these brands. We know, and we want to make sure that we can keep our customers happy by trying to reduce that lead time."Toyota has managed just 95,141 sales across the first six months of 2026, which if sustained, would see them sink below 200,000 sales for the year. But Pappas says the issue is supply, not demand, and a new pipeline of production will deliver more vehicles to customers in the second half of the year. The brand is targeting around 230,000 sales this year."Our biggest downfall this year has actually been our supply at the start, because we knew last year that we were coming into this year with a Q1 into Q2 shortfall, because we were launching the RAV4 later than we had liked," Pappas says."So the RAV4 is in our top two selling vehicles. We're only doing 40,000 RAV4s (compared to 52,000 in 2025) this year. "We'd like to do more than that because we know that car's good enough and we've got customer demand over a 12-month window to do more than that amount. So therefore, we're only really getting like a nine-month runway on RAV. So we're missing out a whole quarter of new RAV4 sales. "That's our biggest shortfall. And we knew that going into the year. So now the fact that we've been able to secure more production from the global allocation, particularly on hybrids and bZs and other vehicle lines, including Hilux, it's great because that enables us to shorten lead times for customers."

This is a big moment for Toyota in Australia. The biggest in recent memory, even.Because it’s not just when, at last, its best-selling model, the RAV4, scores one of the fastest-growing powertrain choices in Australia, the plug-in hybrid. It’s also the brand tip-toeing into the powertrain solution that will no doubt eventually end up driving all of its icons, from HiLux to LandCruiser and everything in between. And there's another way to look at it, too, and that is that many of the rush of new brands in Australia – BYD, Geely etc – have arrived with a mid-size plug-in in their arsenal. This is Toyota returning serve.Well, kind of. If you're expecting Chinese pricing, think again. The RAV4 PHEV is currently offered in three guises across two grades, with the XSE 2WD ($58,840), the XSE AWD ($63,340) and the new big dog of the range, the GR Sport AWD ($66,340).The RAV4’s biggest competitor these days is probably the BYD Sealion 6, which tops out below where the plug-in Toyota starts, with the Premium listed at $52,990 before on-road costs. Something like a Geely Starray EM-i is even cheaper, starting at less than $38,000. The Toyota does start below something like a VW Tayron eHybrid, in which the Elegance starts from $62,390.In terms of bang for bucks, the XSE trims mirror their non-plugged sibling – and we have a story detailing all the equipment here – while the GR Sport adds a unique exterior package, including a new grille, bumpers and a rear spoiler. There’s also a whole bunch of mechanical stuff you can’t see, too, like a 20mm wider track, sportier front damping, extra rear bracing for better lateral stiffness and a shift-by-wire continuously variable transmission (CVT).The big difference between the two grades, at least in terms of look, is the front-end treatment, with the XSE cars getting the perforated-style grille that reminds me a little of a chain-link fence, and the GR Sport scoring the deeper mesh grille with far more gloss black. Now I would never be so bold as to tell you which one you should like better, beauty being in the eye of the beholder and all that, but I will say this; if it’s not the GR Sport, then you’re wrong.The plug-in power here comes from the combination of a 2.5-litre petrol engine, a 22.7kWh battery, and a front electric motor in 2WD spec, and a second rear electric motor in the AWD trims. Toyota doesn’t quote a combined torque figure, but power is at 201kW for the single motor, and 227kW for the AWD, officially making this the most potent RAV4 we’ve ever seen in Australia. The GR Sport, for example, will clip 100km/h in a brisk 5.8secs – provided the battery is topped up.Like most makers of plug-in hybrids, Toyota's claim of 0.7L/100km on the combined cycle are fanciful, you will never get close to that. We were averaging around 3.0L with the battery topped up, which is good. But if you want to use no fuel, Toyota says the 2WD version will travel 121kms on electric power alone, while the AWDs will take you 113kms.The rest is fairly RAV4, so we’ll summarise before we get to the good stuff. The PHEV models benefit from the tech upgrade delivered on the rest of the new RAV4 range, and it makes the interior a far nicer, more modern-feeling space. The backseat is sparse but spacious, though the tunnel does cut into the middle-seat leg room, and I had no problems getting my 175cm frame comfy in the window seats. And the boot is slightly smaller, now at 655L VDA rather than the regular hybrid’s 705 litres. Kudos to Toyota, though, for fitting a space-saving spare wheel.OK, caught up? Let’s drive this thing. Climb behind the wheel of the RAV4 PHEV and – and I know this is going to sound a little bit boring – you’ll find it drives a lot like a RAV4 Hybrid, only with a plug. That is not a criticism of this car, it’s consistently among our best-selling vehicles for a reason.The GR Sport is the grade we spent the most time in, and it gets the wider track, the sportier ride and handling and, of course, all the power, at 227kW with the battery fully charged. And the end result is an SUV that is actually really fun to take around corners. There is a balance and a composure to this car that is simply not present on some plug-in hybrid products.Now there is a catch, of course, that’s 227kW with everything topped up. I spent a fair chunk of the test in a vehicle with its battery depleted, which meant I was relying on ICE power above all else, and it felt slower (particularly under rolling acceleration) and you could certainly hear the engine and the gearbox working away under heavy revs.The other catch is that once the battery is depleted, there's no coming back. Some plug-in hybrids have a charge function, where you can use the petrol engine to recharge the battery on the fly. That's not the case here. It will recoup some charge from the regenerative braking, but nowhere near enough to fully charge the battery. You need to plug it back to meaningfully top it up. The only minor downside to the drive experience, or the thing that differs a little bit from the regular RAV4 Hybrid, is the weight of this vehicle. Using round numbers, there appears to be around 250kg in extra weight on board the plug-in hybrid version – pushing the kerb weight to around two tonnes – and you can feel it around you at times.They have upgraded the brakes on the PHEV vehicles to deal with the extra weight, but it doesn't disguise it completely. It can feel heavy under braking when you're on a slippery downhill into a corner, which takes a little bit of getting used to.The other quirk is that, in some of vehicles we tested, when you put your foot down you could hear the faintest whine of what seemed to be the electric motor spinning, which, if you're a bit like me and a tiny bit OCD about these things, might eventually drive you crazy.Final quirk – and it’s a complicated one, but I’ll try and sum it up quickly – is that the RAV4 PHEV was developed for 2025 ANCAP protocols, not 2026, but a launch delay saw it miss that testing window. Updates are being made, and the brand is confident it will be issued a five-star rating later this year, but that won’t be retroactive. The cars now are unrated, and will remain so, even after a new ANCAP result is issued this year. Whether that's a problem is a decision for you. 

Hyundai's premium brand Genesis has detailed its plan to supercharge sales, with the group's local CEO suggesting deliveries could more than triple under a new strategy.Genesis launched in Australia under a direct model, in which the brand itself held the limited retail spaces (just one store each in a handful of capital cities) and sold the vehicles direct to customers without enlisting a dealership network.New Hyundia Group president and CEO Don Romano has previously labelled the strategy a "distraction", and vowed to return to a more traditional national network of dealer locations he refers to as agencies.Now Romano has forecasted the results it could deliver, telling CarsGuide 500 sales a month was a possible target, which would mean annual sales of 6000. Last year, the brand managef 1602 total deliveries."We're moving from a direct model to an agency model," Romano says."We've opened two stores that are operational right now, and we're opening a third hopefully next week. A fourth, we're just finalising the design plans."It is the direction that we're going to head in. It doesn't mean we're not going to keep the direct stores, because we invested all that money and they're in certain strategic locations, so we're still kind of working both at the same time."We could continue to do that, or we could convert those stores to dealer (owned), it simply depends on the development of the brand and the rate it develops. But right now the main focus is just to expand through the country with agencies owned by dealers."Even now, with five stores operational, Mr Romano says Genesis is massively underrepresented in Australia, which is hampering the brand's advertising spend that he describes as "wasting money" given the current location penetration."I think right now we're a niche brand. We're not advertising or promoting because we don't have the coverage necessary to be able to go out and tell the story," he says. "With five stores across a country of this size, it makes no sense. So we just need to go on the path we're on right now. But we don't want to force it because it's Genesis, not a mass-market brand, so it's best that we get the right dealers in the right place at the right time and if it takes two to three years longer that's fine."For us to take that next leap we've got to tell the story, and to tell the story, we have the resources to do it, but I'd be wasting money, because if you're for instance in Adelaide it means nothing to you because there's no representation. If you're in parts of Sydney, parts of Melbourne, parts of Perth, we just don't have the proper coverage to service the customers."Genesis has always been loath to talk about sales targets, instead referring to customer loyalty as a target, but Mr Romano says that, once the network is in place, monthly sales of at least 500 would be a viable goal.Hitting it would at last put Genesis on the premium-brand map, though one with plenty of work still to do to catch its closest legacy competitor in terms of sales, Lexus, which is managing around 1000 sales per month at the moment. It would also be well-timed to take advantage of the brand's new performance focus under its Magm Magma performance division."I'm not as focused on the volume growth as I am on the loyalty and the customer service ratings to get the word of mouth to help get the exposure, but I would say...double and triple would be the minimum if we had full coverage," he says. "Because right now we're doing 150 a month, so we should be able to do 500 absolutely, but probably way down the road when it's done organically and not done with incentives and prices and dumping vehicles and demos – I don't want to get near that."

Toyota's Project 150D mini-HiLux ute project is on the cards for an Australian launch, with the brand confirming there would be demand for the smaller, car-based ute in Australia. Designed to take on everything from the BYD Mako (or Shark 5) to the Ford Maverick, the new ute is reportedly being developed for a launch in Brazil in the first half of 2027. When it does, the ute will debut Toyota's first tray-backed plug-in hybrid powertrain, using a system taken from the Prius.That would pair a 2.0-litre petrol engine with two electric motors for a total system output of 166kW, while the e-CVT is joined by a second electric motor to enable eFour all-wheel drive.Toyota in Australia hasn't confirmed the ute for sale here, it has indicated its interest in it, suggesting it had identified demand for a smaller car-based ute.Asked if the Project 150D was made globally available, Toyota Australia would have its hand up for it, Ray Munday, Senior Manager Product Planning and Pricing at Toyota Motor Corporation Australia, replied: "We'd certainly look into it"."If it was the right product at the right price, we believe there is some demand for that here. But it's always got to be about the right product at the right price. Otherwise, it won't be successful," he said.Described by Toyota in the USA as an "SUV with a bed", the smaller ute is understood to be based on the same platform as the Toyota Corolla Cross. It will be one of a rash of new mini ute products, with the BYD Mako, or Shark 5, also to join the fray against vehicles like the Ford Maverick.In Brazil, the Mako is a plug-in hybrid producing an expected 175kW, and promising a circa-100km EV-only driving range, along with a choice of two- or all-wheel drive.Global markets are expected to see power increased to more like 200kW. The powertrain in question will reportedly be borrowed from the Sealion 6 SUV, pairing a 1.5-litre turbo-petrol engine with an electric motor.

Hyundai has affirmed its commitment to launching its first dual-cab ute in Australia, but concedes it might be later to arrive than first expected, with the brand's local CEO saying he'd rather "get it right than fast".From the outset, Hyundai has suggested it has several levers to pull in producing its first ute, with the brand saying it could lean on its US partnership with General Motors, borrow from sister brand Kia and its Tasman, or develop something itself.All signs had pointed to the brand's newly developed EREV technology as the likely powertrain choice, with the brand targeting a potential driving range in excess of 1000kms without needing to plug in from its petrol-electric solution.That remains "option number one", according to Hyundai Australia CEO Don Romano, but the executive says unfavourable exchange rates with the US Dollar has forced it to look closer to home for production."If it's built in the US we have an exchange rate issue we would have to deal with, there are also tariff issues depending on where we would also consider building. So we're going to keep our options open in this area because what we need is a...pickup truck, and it has to be unique," he says. "A lot of the Chinese brands are already bringing in pickup trucks, and I don't think Australia needs another standardised pickup truck, so what will make ours unique? I think it may take longer than we had initially anticipated to get there but I'd rather get it right than fast."Mr Romano says the brand is also considering where to build the ute for export, suggesting the brand is exploring facilities across the Asia-Pacific region to reduce the impact of currency exchange and transport. It is also plotting the impact of a new ute on Australia's tightening NVES, or New Vehicle Emissions Standard."We'll have to leave that hanging in limbo for now until we can better define, one; the impact to NVES, two; the drivetrain, three; the FX and alternative locations," he says."We have plants throughout Asia Pacific – we have plants in Indonesia, Thailand, Malaysia, Vietnam – and we want to utilise those plants as much as possible to minimise the impact of foreign exchange."So if there's an option there and it takes a little longer, so be it. As long as we get the right ute at the right price."Despite the headwinds, Hyundai insists its first ute is still a go-project, suggesting it still could be in market by 2030."It's definitely going to happen. The timing is really the issue, because if it's built in the US... and if the FX is favourable, it would be sooner. But if it's not, we don't need another ute that's priced too high," Mr Romano says."I'd say we're still looking at between now and 2030. There's a timeframe, but even that isn't a guarantee and it would be subject to us saying 'that's the right ute for Australia', and I haven't got to that point yet that anything we're doing at this stage is a guaranteed right vehicle for Australia."

Hyundai has taken aim at its biggest Chinese rival in Australia, with the brand's local chief sensationally suggesting BYD is dumping cars and losing money, while labelling the auto giant's stratospheric growth unsustainable.That's the word from CEO and President of Hyundai Australia, Don Romano – not just the company's most senior automotive executive, but also CEO of the brand's Asia Pacific Regional Headquarters – who did not hold back when asked if he was surprised at how quickly BYD had been able to shoot up the Australian sales charts."I think if I were to lose money and dump cars, and if my stock price was down 40 per cent, I could do the same," he says."I think there's a big difference between growth at any cost and growth organically, so I'm not surprised. I would be if it was sustainable."We're celebrating our 40th anniversary and we're planning another 40 years, so if they're around in 40 years then hats off to them, but at the rate they're going right now?"It's their strategy, but no, I'm not surprised. I think none of us are. We know what their strategy is, we know why they're doing what they're doing, it isn't the way we would do business, but time will tell."It's a stunning attack from within the industry, with Mr Romano seemingly referring to BYD's results in China, where, in contrast to Australia, sales have been falling. That appears to be putting downward pressure on BYD's stock price, which has fallen 36.39 on the Hong Kong exchange over the past 12 months.In Australia, BYD has been on an industry-reshaping roll, finishing May as the second-best-selling brand in the country, trailing only Toyota. Its year-to-date sales are up around 120 per cent as it emerges as the fastest-growing brand in the country.Mr Romano's comments seem to suggest that at least some of that growth is being fuelled by selling vehicles here below cost.Hyundai sales are up a more modest five per cent across the first five months of 2026, though both brands have sold a similar amount of vehicles, with BYD's approximate 33,000 edging Hyundai's approximate 32,000.BYD in Australia opted not to comment on this story.

China is now taking aim at the world's affordable performance icons, with a cut-price hot hatch looming that could tempt buyers from a Hyundai i30 N or Ioniq 5 N and a VW Golf GTI or R.The model in question is the Leapmotor B05 Ultra, which has been revealed in China as an all-electric hot hatch producing 180kW and 320Nm, and sprinting to 100km/h in just 5.9 seconds.That is just the beginning, with the Chinese hot hatch to be handed over to Stellantis' (and specifically Alfa Romeo's) chassis engineers to deliver a European-class hot hatch that could be a true bang-for-bucks bargain.That's the word from Leapmotor's Head of Commercial Operations in Europe, Danilo Annese, who says the "sky is the limit" for the Ultra."It is not sure that it will be exactly the one you see in China. In the sense that it is Ultra and it should be Ultra," says Annese."We are discussing that (Europe's Ultra) is not that car. It is not the Chinese car, (that) is a body kit. And we want to do it a little bit better than that. But the sky is the limit. Let's see what we can do.""We are working on the other things now to see what we can have as a package."It is understood that the changes aren't just limited to chassis tuning, but could also include bespoke hardware, and a further power boost."Those are the discussions," Annese says.The export-ready B05 Ultra will be ready in the first half of 2027, with the softer variant - named simply the B05 - launching in Australia at the end of the year.Pricing promises to be sharp, too, with the first B05 launching at around $35,000 in our market.