The news came ahead of the WRC Safari Rally Kenya which starts on Thursday, and Hyundai is set fully to focus on endurance racing, using cars from its Genesis subsidiary, from next year.

This is despite Hyundai winning the drivers' title last season with Tänak's teammate, Belgian Thierry Neuville.

Hyundai rally team director Cyril Abiteboul had previously stated that one option could be for Hyundai cars to continue in the WRC as privateers.

In general, teams such as Škoda and Citroën, who do not race in the top tier but do in the Rally2 series, have opted to continue this way for the next two seasons.

This will have the effect of propping up the top Rally1 level, while Lancia, who last competed in the series over 30 years ago, has expressed interest in a return also.

Either way, Hyundai's departure would be a significant blow to the WRC, as there are only three manufacturers competing at the top level, Toyota and M-Sport Ford being the other two.

While Hyundai and Toyota are substantial works teams, M-Sport Ford is a privateer on a much smaller budget – meaning without Hyundai, races would essentially be between different Toyota drivers.

Over the past year or two, the WRC has had to closely examine its future and make tough decisions to ensure its sustainability.

The International Automobile Federation (FIA) decided at the end of last year to abandon hybrid technology, while other rule changes to take effect from 2027 will make Rally1 and Rally2 cars more technically similar.

Costs are also to be cut by limiting the number of team members allowed, and by modifying on-site logistics.

Citroën raced in the highest level of competition as recently as 2019.

Ott Tänak has raced for all three current WRC top-tier teams, winning the championship in 2019 with Toyota, before moving to Hyundai. He has been there ever since, save for the 2023 season when he was at M-Sport Ford.

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