Designed in Germany, the ix35 is set to intrude on sales in the compact SUV segment up against the likes of Rav4, Holden Captiva, Honda CR-V, Mitsubishi Outlander and Kia Sportage as well as Nissan's Dualis. Top-of-the-line ix35 Highlander will even take on the likes of Volkswagen's Tiguan.

While the ix35 may be seen by many buyers as a sexy little SUV, the reality is much deeper. It is the South Korean maker flexing it's not inconsiderable muscles, taking on the Japanese at their own game. While most car company's rode out the global financial crisis, Hyundai powered ahead chalking up a sales increase of 117 per cent in 2009. In January 2010 alone sales world-wide were up 50 per cent and in Australia up by 68 per cent.

“Our growth is built on one thing – quality,” said Hyundai Australia CEO, Edward Lee. With rival Toyota having it's own crisis of sorts in it's heartland – quality and reliability – Hyundai is well placed to offer affordable alternatives. ix35 has three spec trim levels – Active, Elite and Highlander – and offers a choice of three engines, two petrol and a new R-Series turbo-diesel. The ix35 also launches the Hyundai family-look hexagonal grille which will follow in all new Hyundai vehicles. Where the Tucson was primarily a $22,990 drive-away no-more-to-pay SUV, the ix35 has more ambitious pricing, with upgraded specifications to match.

The Active is a front wheel drive only model and is powered by a 2.0 litre petrol engine that puts out 122 kW of power through a five speed manual or six speed auto shifter with sequential changer. To Hyundai's credit even this entry-level model is packed with the necessities of motoring life. It comes standard with six airbags, stability control, downhill brake control, hill start assist, 17 inch steel wheels, keyless entry and alarm, electric drivers seat, Aux and USB port with iPod compatibility, and steering wheel mounted audio and cruise controls. It is priced from $26,990 for the manual and $28,990 for the auto.

The next trim level, Elite adds all wheel drive on demand and comes with two engine options, a 2.4 litre petrol and a 2.0 litre R-Series turbo-diesel hooked up to the standard six speed auto. In addition Elute gets roof rails, front fog lamps, dusk sensing headlights, leather/cloth upholstery, leather steering wheel, luggage net, 17 inch alloys and full size spare and push-button start and proximity smart key. Elite is $31,990 for the petrol and $3000 more for the diesel. This is a cracker of a diesel putting out a massive 392 Nm of torque.

Topping the range is the Highlander which comes only with the turbo diesel and auto transmission. It adds 18 inch alloy wheels, panoramic glass roof, electric folding mirrors, full leather upholstery, heated front seats, rear view camera, dual zone air conditioning and six stack CD and upgraded audio system. Highlander is $37,990.

Hyundai expects the Active and Elite models to share 90 per cent of sales with Highlander taking about 10 per cent. Like all manufacturers Hyundai has become more fuel economy conscious and engaged Hans Tholstrop to drive a diesel Highlander on an economy run from Melbourne to Adelaide and return on one tank of fuel. The result was 1446 km on 72.23 litres returning 4.8 litres/100 kms or 58 miles to the gallon in the old money.

Official combined urban/country economy figures across the range are 8.5 litres/100 km from the manual and automatic Elite 2.0 litre, 9.2 litres/100 km from the Elite petrol 2.4 and 7.5 litres.100 km from the turbo diesel variants. The ix35 has a 55 litre fuel tank. The vehicle is a genuine five seater with the rear seat offering plenty of leg and headroom, but with tight shoulder room for three adults. With the seats up ix35 has a generous luggage capacity of 591 litres which escalates to 1436 litres with the rear seat folded down. Towing capacity for the AWD variants is 1600kg braked and 750 kg unbraked for all three variants. Braked towing capacity for the 2WD is yet to be confirmed.

FIRST DRIVE

Hyundai launched the vehicle out of Melbourne and we were able to test drive all three variants. The pick of the engines is the turbo-diesel which delivers effortless performance. The noise, vibration, harshness is more than acceptable although when pushed hard both the petrol engines make themselves heard in the cabin. The dynamics between the three variants change a little with the wheel sizes and we found the Elite petrol seemed to turn in more directly and handle corners with more ease than the Active and Highlander.

The Elite seemed to have a harder suspension which did not enjoy some of Victoria's less smooth surfaces giving occupants a bumpier ride than we would have expected. We like the fact all three cars have power seat controls for the driver. The dash is contemporary but we have the same complaint with the ix35 as we have with other Hyundai product in that the blue digital instrument read-outs are difficult to read.

All three engines are willing to rev and only the 2.0 litre seems to work hard on steep hills. There's a bit of body roll on sharp corners, but in overall terms the understeer is well within the norm for front wheel drive/all wheel drive SUVs. The ix35 goes on sale on Monday February 15 at Hyundai dealers around Australia. The ix35 has Hyundai's 5 year/unlimited kilometre warranty.

Active 2WD 2.0 L 4cyl DOHC 122 kW/197 Nm @4600 rpm 5 spd man $26,990*

Active “ “ “ “ “ “ “ 6 spd auto $28,990

Elite AWD 2.4 L 4cyl DOHC 130 kW/227 Nm @ 4000 rpm 6 spd auto $31,990

Elite AWD 2.0 L 4 cyl DOHC 135 kW/392 Nm @ 1800-2500 rpm 6 spd auto $34,990

Highlander AWD 2.0 L 4 cyl 135 kW/392 Nm @ 1800-2500 rpm 6 spd auto $37,990

(*Prices include GST but not dealer delivery and statutory charges)