A brand-new Hyundai SUV just failed a U.S government safety test in the worst way possible, prompting an urgent federal investigation and a recall. During a routine New Car Assessment Program (NCAP) crash test, a 2025 Hyundai Santa Fe reportedly caught fire, leading to a recall of more than 135,000 vehicles in the United States.
Documents filed with the National Highway Traffic Safety Administration (NHTSA) indicate that the problem results from an improperly installed terminal cover on the starter motor. In some crash scenarios, the improperly installed cover can make contact with the engine’s cooling fan assembly, creating an electrical short that can ignite a fire.
135,000 Santa Fe SUVs Under Recall
The affected SUVs are the 2024 and 2025 models built between December 28, 2023, and July 7, 2025. According to Hyundai, only the non-hybrid Santa Fe models with the brand’s turbocharged 2.5-liter four-cylinder engine have the issue.
Although only one NCAP crash test resulted in a fire, Hyundai and federal regulators took urgent action to prevent potential real-world incidents. Until now (October 2025), no injuries, accidents, or fatalities related to the issue have been reported.
In a statement, the NHTSA said that the starter motor terminal cover on some vehicles may not be fully seated over the B+ positive terminal, and this increases the risk of contact with nearby components in the event of a collision. That, in turn, could cause an electrical short circuit leading to a fire under the hood.
Hyundai’s Response
In a statement, Hyundai Motor America told regulators that it became aware of the issue after internal testing revealed signs of a thermal event following a government crash assessment.
“We are cooperating closely with NHTSA to ensure the safety of all Hyundai customers. Dealers will immediately inspect affected vehicles and perform the necessary repairs at no cost,” said a company spokesperson.
Hyundai emphasized that the issue was manufacturing-related, not design-related. The automaker added that the defect likely affects only about 1% of the recalled vehicles.
What Hyundai Owners Need to Know
On December 1, 2025, Hyundai will send notifications to all dealers and affected owners. Hyundai will advise owners to bring their vehicles to a dealership, where technicians will inspect them and reinstall the starter motor cover for free.
Hyundai said it will fully reimburse owners who paid out of pocket to fix starter motor issues. The company will also provide free alternative transportation while vehicles are being serviced.
A String of Safety Concerns
In recent years, Hyundai and its affiliate Kia have recalled millions of vehicles over electrical and brake system issues that posed similar hazards. In 2023, the two automakers recalled over three million vehicles due to an anti-lock brake system module that could leak brake fluid internally, increasing the risk of a fire in the engine compartment when parked.
While Hyundai still has the fewest recall numbers compared to other major competitors, the Santa Fe recall in 2025 marks its 14th recall in the U.S. this year.
The Popular Santa Fe Faces a Setback
The fifth-generation Santa Fe, debuted in 2024 with a boxier, more rugged design, new technology and interior upgrades. Buyers quickly made the SUV one of Hyundai’s best sellers and praised it for its family comfort and off-road capability.
The mode is available in both front-wheel and all-wheel drive. It has a terrace-style tailgate making it a stylish SUV for buyers who love adventure.
“The all-new Santa Fe finds a perfect balance between city life and the great outdoors, offering versatility with a premium experience,” said SangYup Lee, Hyundai’s Executive Vice President of Global Design, when unveiling the redesigned model.
The current safety recall is a setback that threatens to hurt its reputation at least temporarily. Hyundai is working to reassure customers about the safety and reliability of the Santa Fe.