Reports suggest that Hyundai Motor Group is considering the launch of hybrid cars in India as soon as 2026.
The conglomerate, comprising Hyundai Motor and Kia, is assessing a hybrid SUV with dimensions comparable to its popular mid-sized Creta SUV in the Indian market.
Hyundai Motor Group is reportedly considering introducing its initial hybrid vehicles in India by 2026, according to three sources familiar with the matter. This move reflects a strategic shift for the South Korean automotive conglomerate, aiming to diversify beyond electric vehicles and strengthen its presence in a pivotal automotive market.
Sources with direct insight into the plans stated that the group, comprising Hyundai Motor and Kia, is contemplating the introduction of a hybrid sport-utility vehicle (SUV) with dimensions akin to its popular mid-sized Creta SUV in India. Both Hyundai, the second-largest carmaker in India, and Kia are aiming for the launch of hybrid SUVs by 2026 or 2027, the sources added. They also mentioned that their electric vehicle (EV) initiatives for the Indian market remain on course.
In a statement to Reuters, Hyundai Motor Group expressed its dedication to embracing a future of electrified transportation and emphasized its intention to tailor product strategies according to the needs of individual markets.
The shift towards hybrid vehicles, which combine a gasoline engine with an electric motor, is driven by Hyundai’s observation of a notable uptick in hybrid sales in India. This shift marks a departure from the company’s initial focus solely on battery electric vehicles.
Hyundai and Kia, currently offering only petrol, diesel vehicles, and imported electric vehicles like the IONIQ 5 and EV6, are actively preparing to introduce their first domestically manufactured electric vehicles (EVs) in India, a move anticipated to take place in 2025.
According to one of the sources, the uptake of electric vehicles (EVs) has been sluggish due to steep prices and insufficient charging infrastructure. Consequently, the company has opted for hybrids as a temporary solution or “interim strategy”.
“Hyundai possesses hybrid technology in various global markets. They have initiated the adaptation of this technology for vehicles in India to integrate it into the mainstream,” stated the source. They added that the increasing consumer demand and acceptance of hybrids in recent months prompted this transition.
In 2023, total car sales in India exceeded 4 million units, with electric vehicles (EVs) comprising over 2 percent of the market share. Hybrids, primarily led by Toyota Motor, are gradually catching up, accounting for a 2 percent share as well.
Hyundai is intensifying its focus on India, where it intends to pursue a $3-billion IPO, while concurrently reducing production in China after sustaining losses over several years and divesting its two plants in Russia.
During his second trip to the country in less than a year, Hyundai Motor Group Executive Chair Euisun Chung engaged in discussions about the company’s medium- and long-term strategies for India, which encompass plans for electric vehicles (EVs) and hybrid vehicles.
