Hyundai Australia has announced significant price reductions for its refreshed 2025 Tucson SUV lineup, positioning the popular vehicle to directly challenge the segment-leading Toyota RAV4.
The strategic price cut comes as part of Hyundai’s aggressive campaign to capture a larger share of Australia’s competitive mid-size SUV market.
Industry analysts view the move as a calculated attempt to capitalize on ongoing supply constraints affecting Toyota’s production capacity, potentially allowing Hyundai to gain ground on its Japanese rival.
Hyundai’s refreshed Tucson now starts at just $34,400 before on-road costs for the base model, representing a substantial $2,800 reduction compared to the previous entry point.
This pricing strategy places the Tucson in direct competition with the RAV4 GX 2WD, which currently retails for $36,900 plus on-road costs.
The revised lineup features sharper exterior styling, enhanced technology offerings, and improved standard equipment across all variants while simultaneously becoming more affordable.
According to James Kim, Hyundai Australia’s Chief Operating Officer, the price adjustment reflects the company’s commitment to delivering exceptional value in a highly competitive segment.
“We’ve carefully analyzed the market and identified an opportunity to reposition the Tucson to appeal to an even broader range of Australian buyers,” Kim explained during the launch event in Sydney.
“By combining our refreshed design, enhanced features, and more competitive pricing, we’re confident the 2025 Tucson represents unmatched value in its class.”
The pricing realignment affects the entire Tucson range, with reductions between $2,800 and $4,200 depending on the variant.
Mid-tier and premium models have received the most substantial discounts, with the Tucson Elite AWD diesel dropping by $4,200 to $45,900 before on-road costs.
Industry data shows the mid-size SUV segment remains Australia’s most competitive, accounting for nearly 20 percent of all new vehicle sales in the past year.
The RAV4 has dominated this category, consistently outselling its nearest rival by almost two-to-one, despite well-documented supply constraints that have resulted in delivery wait times extending beyond six months for some variants.
Hyundai appears poised to capitalize on these challenges, with company representatives confirming strong inventory levels and delivery timeframes of just 4-6 weeks for most Tucson models.
The Korean manufacturer has also made significant improvements to the Tucson’s features and specifications, strengthening its value proposition beyond mere price considerations.
All models now include Hyundai’s comprehensive SmartSense safety suite as standard, featuring autonomous emergency braking, adaptive cruise control, lane-keeping assist, and blind-spot monitoring.
Higher-grade variants gain additional premium features including a 10.25-inch digital instrument cluster, heated and ventilated front seats, and a premium Bose audio system.
The refreshed exterior design showcases Hyundai’s evolved “Sensuous Sportiness” design language, with updated LED lighting signatures, revised front and rear bumpers, and new alloy wheel designs across the range.
Inside, the cabin receives subtle refinements including upgraded materials, additional sound insulation, and revised climate control interfaces that improve everyday usability.
Powertrain options remain unchanged, with buyers able to choose between a 2.0-liter naturally aspirated petrol engine, a 1.6-liter turbocharged petrol, or a 2.0-liter turbodiesel.
Front-wheel drive is standard on entry-level variants, while all-wheel drive remains available on higher-specification models, providing a comprehensive range to suit various buyer preferences and requirements.
Fuel efficiency figures are competitive across the range, with the diesel variant achieving a claimed combined consumption figure of 6.3L/100km, making it an appealing option for buyers prioritizing long-term running costs.
The 1.6-liter turbocharged petrol offers the strongest performance credentials, delivering 132kW and 265Nm, enabling a 0-100km/h time of around 8.8 seconds when paired with the seven-speed dual-clutch transmission.
Technology remains a strong selling point for the Tucson, with wireless Apple CarPlay and Android Auto now standard across the range, complemented by multiple USB-C charging ports and an available wireless charging pad.
The infotainment system receives over-the-air update capability, ensuring the vehicle’s digital features remain current throughout its lifecycle.
Hyundai’s renowned after-sales package continues unchanged, with all Tucson models covered by a five-year unlimited-kilometer warranty, complemented by complimentary roadside assistance and capped-price servicing.
This comprehensive ownership proposition further strengthens the Tucson’s value argument against key competitors including the RAV4, Mazda CX-5, and Mitsubishi Outlander.
Market analysts predict the price repositioning could significantly boost Tucson sales volumes, potentially increasing Hyundai’s market share in the crucial mid-size SUV segment by up to 20 percent over the next twelve months.
“This is a strategic masterstroke from Hyundai,” commented automotive industry analyst Sarah Thompson from Market Intelligence Group.
“They’ve identified Toyota’s supply vulnerabilities and responded with a compelling product at an aggressive price point, effectively removing the primary barrier to consideration for many potential buyers.”
Thompson noted that while Toyota enjoys unmatched brand loyalty in Australia, extended delivery timeframes have increasingly pushed buyers toward alternative brands offering comparable quality and features with shorter wait times.
“The mid-size SUV buyer is typically pragmatic and willing to consider multiple brands. When faced with a six-month wait versus immediate delivery of a well-equipped alternative at a lower price point, many will opt for the latter.”
Dealer response to the pricing announcement has been overwhelmingly positive, with Hyundai retailers reporting a substantial increase in Tucson inquiries following the news.
Michael Anderson, Dealer Principal at Sydney’s Eastern Suburbs Hyundai, described the pricing strategy as “exactly what we needed” to compete effectively against Toyota’s dominant market position.
“We’ve always had a great product in the Tucson, but the price gap to RAV4 was enough to make some buyers pause. This realignment removes that hesitation, and we’re already seeing the results in showroom traffic.”
The full 2025 Tucson range pricing is as follows:
- Tucson (base) 2.0 MPi 2WD: $34,400 (down $2,800)
- Tucson Elite 2.0 MPi 2WD: $38,300 (down $3,100)
- Tucson Elite 1.6T GDi AWD: $41,900 (down $3,800)
- Tucson Elite 2.0 CRDi AWD: $45,900 (down $4,200)
- Tucson Highlander 1.6T GDi AWD: $46,900 (down $3,900)
- Tucson Highlander 2.0 CRDi AWD: $49,900 (down $4,000)
- Tucson N Line 1.6T GDi AWD: $47,900 (down $3,800)
- Tucson N Line 2.0 CRDi AWD: $50,900 (down $3,900)
All prices exclude on-road costs such as registration, stamp duty, and dealer delivery charges.
Hyundai has confirmed the revised pricing structure takes effect immediately, with dealerships nationwide already implementing the new strategy.
The company expects the most significant demand to center on the mid-range Elite variants, which offer an appealing balance of features and value, particularly in the turbocharged petrol configuration.
While Toyota has yet to respond officially to Hyundai’s pricing move, industry insiders suggest the Japanese manufacturer is unlikely to engage in direct price competition, instead focusing on addressing its supply chain constraints and leveraging the RAV4’s strong hybrid credentials.
The RAV4 Hybrid continues to command significant waiting lists despite its premium pricing, highlighting Australian buyers’ growing preference for electrified powertrains.
This remains one area where Hyundai’s Tucson lineup currently lacks a direct competitor, though company representatives hinted that electrified variants might join the range in future updates.
“We’re continuously evaluating our powertrain strategy across all models,” explained Hyundai Australia’s Product Planning Manager David Smith.
“While we can’t comment on specific future products, electrification is clearly a key focus for our brand globally, and we’re committed to bringing the most relevant technologies to the Australian market when timing and conditions are right.”
For now, Hyundai appears content to compete on the traditional metrics of value, features, and availability – areas where the newly priced Tucson presents a compelling case against its established rivals.
With consumer demand for mid-size SUVs showing no signs of slowing, the intensified competition between Hyundai and Toyota ultimately benefits Australian buyers through improved value, features, and potentially reduced waiting times.
The refreshed 2025 Hyundai Tucson is available in showrooms nationwide from this week.