Hyundai plans to launch hybrid cars in India by 2027
What's the story
South Korean automaker Hyundai, the second-largest car manufacturer in India, is preparing to enter the hybrid vehicle market within the next three years. This strategic move comes in response to increasing domestic as well as global demand for hybrid vehicles. The company's shift toward hybrid powertrains, marks a departure from its previous focus on purely electric vehicles (EVs).
Goal
Hyundai's hybrid strategy for Indian market
Euisun Chung, the Executive Chairman of Hyundai Motor Group, recently informed the company's Indian employees, that hybrid vehicles will play a crucial role in their product lineup. This strategy was shared at a town hall meeting earlier this month. In addition to electric vehicles, Hyundai plans to offer hybrid powertrain options for its midsize SUVs and sedans in the future.
Future
Hyundai's potential hybrid models and investment plans
Hyundai is considering the incorporation of hybrid technology into models such as the Creta, Alcazar, Verna, and Tucson SUV, within the next decade. Despite Kia's commitment to bring hybrid cars to India, Hyundai had previously been reluctant to adopt this technology. The firm has committed an investment of ₹33,000 crore over the next 10 years in India. The goal is to create a capacity of 1.5 million four-wheelers, by the end of this period.
Plans
Hyundai's collaboration and future EV launch
Hyundai has partnered with Indian battery manufacturer Exide Industries, to localize cells and ensure affordable pricing. The first localized EV based on the Creta, is scheduled for launch within a year. Additionally, a mass-market offering is planned for 2026-27. This move aligns with Hyundai's strategy to diversify its product offerings in the Indian market.
Market overview
Hybrid vehicle market in India
During the fiscal year 2023-24, roughly 85,000-90,000 hybrid vehicles were sold in India, accounting for 2% of total sales. Maruti Suzuki and its global alliance partner Toyota currently dominate the hybrid vehicle segment in India. Maruti Suzuki has set a goal of retailing around 7.5 lakh hybrid cars by FY 2031, and is already producing affordable hybrids.