HYUNDAI

Hyundai drops wagon, new hatchbacks and SUVs are coming

Hyundai is preparing to end the wagon story, as the aging i30 Wagon goes down in history.

Spy photos from last year suggested that the most practical version of the compact model could survive, but a new report says that this body style has no future after all.

The news comes not from someone who wished to remain anonymous, but directly from a high-ranking executive. Xavier Martinet, president and CEO of Hyundai Motor Europe, made it clear that wagons are not a priority for the brand, which marked the end of its last remaining representative.

Pointing to the weaker business case when compared with crossovers and the falling demand, Martinet added that Hyundai's compact model has been heavily used as a fleet vehicle in Europe. Because of its appeal to fleet operators, pricing pressure greatly limits profitability. Also known as the i30 Kombi, the longroof specification of the i30 isn't worthy of a successor.

Martinet's comments underline a broader industry trend that has seen two-row estates steadily lose ground to comparable sport utility vehicles of the crossover variety. Once a core part of a manufacturer's lineup, longroofs are increasingly being replaced by higher-riding models that offer pretty similar practicality while delivering noticeably stronger margins for their makers.

From a business perspective, Hyundai made the right call to give customers what they want. For now, the i30 Wagon continues to serve customers who still want a compact estate with better handling than its higher-riding equivalent in Hyundai Motor Europe's model range.

"There is a reason why we don't talk much about wagons, in this segment demand is not growing. The Hyundai i30 is a vehicle that has historically been mainly intended for fleets, where the price is often low and the profit is not so high," Martinet told Auto Express.

The European boss called global appetite for estate cars “minimal,” with buyers in China and the U.S. abandoning these body styles and instead turning to crossovers and SUVs. The math is no longer in the estate’s favor, and Hyundai has noticed.

Martinet explained that SUVs tend to bring in more money than estate cars, making it harder to argue for keeping the body style.

“You put your investment and R&D resources into projects that make the most sense. There is some demand for estate cars right now, but not a lot,” he said.

The Hyundai i30 estate, which is also sold under the Wagon, CW, SW and Kombi badges, is still on order books in European markets including Italy, France, Germany and Spain. However, Martinet’s comments suggest a quiet departure without a successor.

The estate has been part of the lineup since 2007, with the second and third generations arriving in 2011 and 2017, respectively. Under the hood, the i30 wagon shares its underpinnings with the Kia Ceed SportsWagon, which has already been discontinued.

While Hyundai isn't currently developing wagons, there's a lot going on behind the scenes. The South Korean brand will soon unveil the European version of its new i20 subcompact hatchback, which debuted in Brazil.

The older third-generation i30 is expected to receive a third facelift, but it's unclear whether the hatchback and fastback will be the same. The Elantra sedan could return to the Old Continent after an earlier departure.

In any case, the real focus is on the SUVs that are struggling to sell in Europe's busiest segments. The Bayon, Kona and Tucson are all set to get redesigned versions soon, each with sharper styling and the latest infotainment hardware.

Aside from weak demand, there’s another reason Hyundai isn’t allocating budget and resources to new wagons. Martinet admitted SUVs generate higher profit margins: “Usually we manage to make more money with an SUV than a station wagon.” While it’s easy to criticize automakers for launching the umpteenth crossover, that’s what buyers want, and it makes the company more money than a slow-selling wagon with a lower profit margin than an equivalent SUV.

That’s not to say wagons are dead. Europe remains the last bastion for long-roof models, and there are still plenty of compact and midsize estate cars for buyers who don’t want to deal with the downsides of an SUV. From the Volkswagen Golf Variant to the BMW 5 Series Touring, Europeans remain relatively spoiled for choice. Just last week, Audi brought back the A6 Allroad and gave it some RS6-worthy wide hips.

Even Hyundai’s sister brand Kia remains committed to the segment, launching the K4 Sportswagon in Europe as a replacement for the aging Ceed Sportswagon. It competes against models such as the Skoda Octavia Combi from the VW Group and the Peugeot 308 SW from Stellantis. It shows that the wagon isn’t completely dead, but there’s clearly more money to be made with SUVs.

Over in Germany, which is the largest new car market of the Old Continent, the i30 Kombi remains one of the most practical offerings in the segment. Combining a low-slung aesthetic with the cargo flexibility associated with station wagons, the i30 Kombi is adequately powerful and frugal as well.

Key figures include 110 kilowatts (148 horsepower) for the 1.6-liter turbo four-pot engine, seven forward speeds for the dual-clutch box, and 6.3 liters per 100 kilometers in the WLTP. In the United States, that would be 37 miles per gallon of dinosaur juice. Highlights also include digital connectivity and 10.3 inches of touchscreen infotainment.

Canned from the automaker's UK-market lineup in 2025, the i30 Estate targets car buyers who still prefer the lower driving position and better aero efficiency of a wagon over the likes of the Tucson and many other compact-sized crossovers. Just like the i30 Hatchback, the i30 Wagon is assembled in Czechia.

Hyundai Motor Manufacturing Czech is located in Nosovice and serves as the company's sole production facility within the European Union. As of June 2026, the factory operates with a maximum capacity of 350,000 vehicles per annum.

The Tucson accounts for more than 75 percent of the production output, whereas the i30 range clocks a little over 10 percent as of this writing. Every single i30 undergoes dynamic evaluations on the facility's open-air test track before leaving the factory grounds.

Autonews