Taking charge
Industry-leading warranty on cards for Hyundai Nexo
Hyundai Motor Company Australia has revealed it is considering a 10-year/unlimited-kilometre warranty for its upcoming hydrogen fuel-cell electric vehicle – the fleet-targetting Nexo midsize SUV.
HMCA manager of future mobility and government relations Scott Nargar detailed some of the concerns fleet managers have with transitioning to electric vehicles, EVS, and fuel-cell electric vehicle, FCEVS, including the Nexo, at the 2018 Australasian Fleet Conference and Exhibition in Melbourne last week.
“One of the biggest things is the practicality and durability of the drivetrains,” he said.
“There is still a fear that, whether it be an electric vehicle or hydrogen fuel-cell vehicle, it is such new technology that I’m not going to make an investment because I’m worried about what the vehicle might be worth in the future, or I’m stuck with a drivetrain or batteries that I can’t afford or don’t want to have to deal with at the end of its life.”
As such, global markets will offer the Nexo with a 10-year/160,000km warranty in keeping with their fiveyear/160,000km term for other Hyundai models, but given HMCA’S fiveyear/unlimited-kilometre standard, Mr Nargar said it might go a step further.
“We’ve got to make a decision whether we go 10-year/unlimitedkilometre warranty on this car, with the consideration that if you take into account that it’s used as a taxi, a lot of the time we cover a taxi for 10 years. So, we’ve been working on some ideas there.”
A 10-year/unlimited-kilometre warranty would reset the benchmark for models sold in the Australian market, eclipsing Tesla Australia’s recentlyannounced eight-year/160,000km term for electrical and mechanical defects and Kia Motors Australia’s seven-year/unlimited-kilometre standard.
Mr Nargar highlighted the Nexo’s ‘second life’ potential as another major selling point for fleet customers, who stand to receive a return on their investment in FCEV technology.
“Having a drivetrain with a 10-year warranty, we can go into a govern- ment fleet for three years,” he said. “As it comes into its third year, they look at that second life of the vehicle – how do they maximise those returns?
“Whether it be ride share, Uber or a private customer, they can make their money back second-hand by selling it or leasing it in the second life with a seven-year factory warranty – we’ll back up that drivetrain, we have no fear. That drivetrain will easily do 10 years.”
HMCA has not locked in final pricing, but the Nexo is expected to carry a hefty premium over the similarlysized Tucson, which currently tops out at $47,450 before on-road costs.
Meanwhile, HMCA plans to launch 37 other ‘eco’ powertrains – including hybrid, PHEV, EV and FCEV – by 2025, including the Ioniq EV small liftback in September and the Kona Electric small SUV, which starts production in November.
Additionally, Hyundai’s luxury brand, Genesis, is developing its own high-performance EV models that will fall under this roadmap.
Mr Nargar confirmed more FCEVS will be part of this onslaught, with the next such model to be a passenger car.
“Honda’s Clarity and Toyota’s Mirai are two FCEV sedans that Hyundai’s unnamed model will take on in particular markets, including North America and China, when it starts rolling off the production line during the next seven years.