Hyundai is getting ready to shut off the lights on the Santa Cruz, the quirky compact pickup that tried to split the difference between a crossover and a work truck. The company is not walking away from trucks altogether, though, and is instead clearing space for a larger, more conventional pickup expected around 2029. That shift turns the Santa Cruz from a niche experiment into a stepping stone toward a full-on midsize contender.
The move reflects a simple reality: the compact lifestyle truck segment never grew as fast as the traditional midsize market, and Hyundai wants to be where the volume is. As the Santa Cruz winds down, the brand is already talking up a bigger model that can go head-to-head with established players and better match what buyers in the United States actually want from a pickup.
Santa Cruz Bows Out As Hyundai Rethinks Its First Truck
Hyundai has decided to discontinue the Santa Cruz compact pickup by early 2027, effectively ending production of its first modern truck after a relatively short run. Reporting on the company’s internal plans notes that the Santa Cruz will be phased out as part of a broader shift in strategy, with the current timeline pointing to the end of the model’s life by the first half of 2027 at the latest, a change that has been framed as part of a larger realignment of Hyundai priorities. The Santa Cruz was marketed as a “sport adventure vehicle” and tried to lure crossover shoppers who wanted an open bed without committing to a full truck, but that pitch never translated into the kind of sustained demand the company hoped for.
Executives have been blunt that the decision is tied to weak sales and shifting consumer preferences, not to any broader retreat from pickups. Analysts tracking the compact segment point out that the Santa Cruz faced a tough crowd of buyers who either wanted a true work truck or a traditional SUV, leaving the small unibody pickup in a narrow lane. Even as Hyundai emphasized the Santa Cruz as a lifestyle tool, the company has now confirmed that it will walk away from this specific compact pickup while keeping its options open for future trucks, a point underscored in reporting that describes the current move as a targeted exit from the Santa Cruz rather than a full retreat from pickups in general.
Why Hyundai Is Making Room For A Bigger Truck
Behind the scenes, Hyundai has been working on a midsize pickup that would sit closer in size and mission to segment staples like the Toyota Tacoma, and that project is the main reason the Santa Cruz is being retired. Product planners concluded that selling a new midsize truck alongside the existing compact would be redundant, especially since the Santa Cruz already overlaps with crossovers on price and capability, so the company chose to clear the decks and focus on the upcoming model instead, a logic laid out in coverage that notes Hyundai decided to retire the Santa Cruz to make space for a new midsize pickup. That future truck is expected to arrive around 2029, giving Hyundai time to refine the formula and avoid repeating the compromises that limited the Santa Cruz.
The company’s public messaging has been careful to stress that it is not abandoning truck buyers, even as it lets its first effort fade out. In a statement responding to questions about the Santa Cruz, Hyundai declined to comment on future product speculation but did highlight that, since its launch in 2021, the Santa Cruz sport adventure vehicle has successfully carved out a small but loyal audience, a point that underscores how the model served as a test bed rather than a long term pillar of the lineup, according to reporting that quotes the company saying, “We do not comment on future product speculation” while emphasizing the Santa Cruz’s role since Since its launch. Internally, the lesson appears to be that if Hyundai is going to compete in trucks, it needs a model that can stand toe to toe with every midsize pickup except the Tacoma, not a quirky crossover with a bed.
Not A Retreat, But A Reset Of Hyundai’s Truck Ambitions
Hyundai insiders have been clear that the end of the Santa Cruz is a reset, not a surrender, and that the company still sees trucks as a key piece of its North American growth. Reporting on the strategy shift notes that, despite the setback, Hyundai insists it is not abandoning the truck market and is instead using the Santa Cruz experience to recalibrate around consumer demand and overall market trends, a stance that has been reiterated in comments to Car and Driver. That means the next truck is likely to lean harder into traditional pickup virtues like towing, payload, and off road credibility, rather than the lifestyle oriented positioning that defined the Santa Cruz.
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