Hyundai is reportedly preparing to step away from the World Rally Championship as a factory Rally1 manufacturer after the 2026 season, with the Korean brand expected to return to the top level of the sport in 2029.
According to Spanish publication AS, Hyundai is set to “freeze” its official WRC programme for the next three seasons rather than continue developing a Rally1 car for the new technical regulations that come into force in 2027. The move would bring an end to the manufacturer’s current Rally1 era, although its involvement in rallying is expected to continue through WRC2.
The decision does not come as a major surprise. While Toyota has already been conducting extensive testing ahead of the 2027 regulations, Hyundai has reportedly not followed the same development path with a new Rally1 car. This has increasingly suggested that the Alzenau-based manufacturer was considering a different strategy for the next phase of the championship.
Rather than committing significant resources to a completely new Rally1 project, Hyundai appears ready to use the coming seasons to prepare for a return in 2029. That year is expected to coincide with the launch of a new-generation Hyundai i20, while further changes to the technical regulations could give manufacturers greater freedom in their choice of powertrain.
One of the most significant changes could concern the powertrain regulations, with manufacturers potentially having greater freedom to decide whether to use hybridisation or pursue an alternative solution. Hyundai could therefore see 2029 as a more attractive opportunity to return with a competitive package rather than rushing into the new Rally1 era in 2027. However, Hyundai is not expected to disappear from rallying altogether.
The manufacturer is preparing a third evolution of its i20 Rally2, which is expected to be homologated before the end of 2026. Hyundai has already been working extensively on the Rally2 project, with its official drivers involved in testing alongside the Rally1 programme.
The new Rally2 could become the centrepiece of Hyundai’s international rallying activities from 2027, with Thierry Neuville and Adrien Fourmaux among the drivers who could potentially compete with the car in selected WRC2 events.
Such a programme would represent a significant change for Hyundai’s current Rally1 drivers. With Toyota reportedly expected to be the only manufacturer competing as a factory team in the top category under the 2027 regulations, Neuville and Fourmaux could potentially find themselves competing in WRC2 while waiting for Hyundai’s return to the premier class.
There is also the possibility of Spanish driver Pepe López becoming part of Hyundai’s international Rally2 programme. The reigning Spanish champion is already closely linked to the manufacturer and could potentially receive an opportunity to compete on the world stage with the new-generation i20 Rally2.
The future of Dani Sordo, meanwhile, appears much less certain. The Spaniard has been part of Hyundai’s WRC programme since the manufacturer returned to the championship in 2014, but his long association with the team could reportedly come to an end as Hyundai reshapes its rallying strategy.
For Hyundai, the next three years could therefore become a period of preparation rather than complete withdrawal. The manufacturer would remain involved in rallying through WRC2 while developing its next major project with the intention of returning to the WRC’s top category in 2029.
Photo Credits: Hyundai
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