Hyundai is stepping back from wagons as sales continue to slide.
SUVs deliver higher margins than estates for the company.
The current i30 Estate lingers in a few regions but grows outdated.

Just months after Mercedes design chief Robert Lesnik dismissed wagons for 2026, calling American and Chinese buyers uninterested, Hyundai now echoes that view. European chief Xavier Martinet told Auto Express the brand will not fund new estates because demand fails to support the cost. The company sees the same lack of enthusiasm in the United States and China, though it still offers the aging i30 Estate in select regions after nearly ten years.

There is a reason we do not discuss estates often: demand in this segment is not expanding. Resources go to projects that deliver the best return. Current interest exists but stays too low to support new work.

SUVs Deliver Higher Returns

Beyond soft demand, Martinet noted SUVs simply earn more. He explained that an SUV usually brings greater profit than a comparable station wagon. While some may fault the flood of crossovers, buyers clearly prefer them and they improve the bottom line compared with slow-selling wagons.

Wagons are not vanishing everywhere. Europe still supports the format, with choices ranging from the Volkswagen Golf Variant to the BMW 5 Series Touring. Audi recently unveiled a fresh A6 Allroad with bold styling. Kia, Hyundai's partner, launched the K4 Sportswagon in Europe to replace the older Ceed Sportswagon, showing some brands remain committed even as SUVs dominate profits.

2024 Hyundai i30 Wagon 1.5 T-GDI Review

Source: Motor1.com

What do you think?

Motor1's Take: The wagon segment will likely persist in some form. Despite the surge in SUVs, a core group of buyers values the practical advantages of an estate. Having driven a Fabia Combi previously, I count myself among them and benefit from living in Europe.

Outside the continent options remain limited, and market trends suggest little change ahead. One bright spot is Audi's plan to bring the A6 Allroad back to the United States in 2027.

Long Live The Wagon:

Source: Auto Express