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Hyundai N performance cars are worth it for the culture, a top executive has said, even if it means paying big emissions fines.
Incurring a $4.2 million fine for missing its emissions targets is “100 per cent worth it” to keep its performance N brand alive, a Hyundai executive has said.
The data showed that only around two-thirds of companies importing new vehicles last year met the government's CO2 emissions targets, meaning they now face hefty financial penalties.
Car brands are given two years to pay, or alternatively purchase credits from rival manufacturers that hit their own targets by selling more low-emissions vehicles.
Speaking with Drive at the launch of the new Hyundai Elexio, Gavid Donaldson, Chief Operating Officer at Hyundai Australia, said that if it didn't have the Hyundai N sub-brand, it would have met its target because it offers a mix of models with petrol, diesel, hybrid and electric powertrains.
“The Hyundai N brand is one of the most important parts of our subculture for Hyundai. We have a great following, a fantastic N community,” Donaldson told Australian media.
“If you just look at N from an NVES point of view, it would be about a $5.1m penalty. If we took that out, we’d actually be in credit. I’m not trying to say it cost us, because I could spend that on marketing from a sponsorship view, just that it is the reason [we didn’t hit target].
Asked by Drive if it was worth it, Donaldson said:
“It’s worth it 100 per cent, the Hyundai N brand is so important to us.”
Each year since 2019, Hyundai has held its N Festival in New South Wales, an annual, multi-day celebration for N owners and fans, featuring track days, expert driver coaching, and social activities.
NVES fines are levied at $50 per gram per kilometre of CO2 over the limit set for a car maker’s model range as a whole, so, in theory, it can continue to sell higher-emitting vehicles as long as it sells enough fully-electric or hybrid ones too to balance them out.
If fines are not paid on time, the amount doubles.
By the end of the year, EVs made up 8.3 per cent of the new-car market. In 2025, Hyundai sold a total of 77,208 cars locally.
Hyundai wasn’t in the top 10 for EV sales, shifting just 1994 examples during the calendar year. In comparison, sister company Kia was third and sold 8159, behind leaders Tesla and BYD.
Donaldson said Hyundai “hadn't been able to maximise its EV sales just yet”, despite being the first to offer petrol, diesel, hybrid electric, and hydrogen models, which hasn’t helped with emissions targets, but expects its new Elexio mid-sized electric SUV will do a lot of the heavy-lifting.
“We haven’t done the huge volume that probably we should have. That's the reality. We have the ICE (internal combustion), hybrid and EV mix. We can play in all three. We keep saying to our dealers, our destiny's in our own hands, that's the best thing about this.
“If we sell a lot more EVs, then I'll be ordering more N [cars] to come into the country. I think we're in a really positive spot to actually continue to take advantage of the NVES if we do it correctly.
“I'm conscious about government policy. We don't set the policy. Between 92 and 93 per cent of our volume this year will be driven by ICE and hybrid. We’re in a position that if the government adapts or changes, we can go either way.
“But it's important to note that hybrid is still our number one strategy for 2026 and 2027. ICE is still going to be stronger than our EV sales, EVs just play a part.”
A born-and-bred newshound, Kathryn has worked her way up through the ranks reporting for, and later editing, two renowned UK regional newspapers and websites, before moving on to join the digital newsdesk of one of the world’s most popular newspapers – The Sun. More recently, she’s done a short stint in PR in the not-for-profit sector, and led the news team at Wheels Media.
