Hyundai could be revving up to make a bigger play in the off-road segment with the global debut of the Crater Concept at the 2025 Los Angeles Auto Show.
The details: Designed in the spirit of the rugged-themed Hyundai Ioniq 5 XRT, Santa Cruz XRT, and Palisade XRT Pro production models—the Crater aims to expand on Hyundai’s market positioning as a brand that appeals to tech-savvy, adventurous buyers.
The compact concept features a tactile, gear-type multi-function off-road controller—with front and rear locking differentials and integrated traction and braking management.
It’s equipped with 33-inch off-road tires and includes a terrain mode selector that features Snow, Sand, and Mud presets for optimized performance across varied terrains.
Other tech elements include a BYOD (Bring Your Own Device) setup for a customizable digital experience, a multi-function display with a rearview camera mirror feed, and a removable Bluetooth center console speaker.
What they’re saying: “Crater began with a question: ‘What does freedom look like?’ This vehicle stands as our answer,” said SangYup Lee, executive vice president and head of Hyundai and Genesis Global Design, in a release. “It is a vision shaped by our unending drive to explore—to inspire our customers to explore deeper and embrace the impact of adventure.”
SangYup Lee
Hyundai and Genesis Global
Why it matters: The Crater concept signals Hyundai’s intent to lean harder into the fast-growing off-road and adventure lifestyle space, using design, tech, and capability to pull in younger buyers who want something more rugged than a typical crossover without losing everyday usability.
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Between the lines: Despite the Crater’s seemingly moon-ready, space theme (hence the name), the concept underscores a current trend in the industry, with several automakers launching new off-road-themed crossovers and SUVs to deepen their footing in the growing market of adventurous buyers.
The off-road SUV market—which had an estimated value of $85 billion in 2024—is expected to reach $160 billion by 2034, at a Compound Annual Growth Rate (CAGR) of 6.4%, per a market analysis by Exactitude Consultancy.
The global crossover market—which was valued at $550 billion in 2024—is projected to exceed $1 trillion by 2034, registering a CAGR of 6.6%.
In 2024, the compact crossover segment dominated the global market with the largest market revenue share of 37.8%—driven by its mix of utility, fuel efficiency, and affordability, according to a Data Bridge Market Research report.
Bottom line: Crater is less about a single show car and more about planting Hyundai’s flag in the off-road lifestyle arena—testing how far it can stretch its crossover lineup toward rugged, tech-forward adventure rigs as the segment continues to grow.
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