Hyundai Shifts Strategy, Plans Hybrid Cars for India, Sources Say
Hyundai Motor Group is setting its sights on launching hybrid vehicles in India by as early as 2026, according to three sources familiar with the matter.
This move marks a strategic shift for the South Korean conglomerate, which includes well-known automakers Hyundai Motor and Kia Corp. The company is considering introducing a hybrid SUV comparable in size to its popular mid-sized Creta SUV, which has performed well in the Indian market.
Currently, Hyundai holds the position of India’s second-largest carmaker, while Kia also has a significant presence in the country. Both brands are planning to debut their hybrid SUVs between 2026 and 2027, alongside progressing with their electric vehicle (EV) initiatives, which are also on schedule. Hyundai Motor Group has expressed its commitment to electrified mobility, emphasizing the optimization of product strategies tailored to individual markets.
The decision to develop hybrid vehicles — which utilize both gasoline engines and electric motors — is driven by the increasing popularity of such technologies in India. This approach deviates from Hyundai’s initial focus solely on battery electric vehicles. The two companies are preparing to introduce their first locally manufactured EVs to India, the world’s third-largest auto market, by 2025.
However, the uptake of EVs in India has been sluggish, hampered by high costs and a lack of sufficient charging infrastructure. This scenario has prompted Hyundai to adopt hybrids as a bridging strategy. “Hyundai has the hybrid technology in other markets. It has now begun work on tailoring that technology for cars in India to make it mainstream,” one source explained, pointing to a recent surge in consumer interest and acceptance of hybrid vehicles.
In 2023, total car sales in India exceeded 4 million units, with EVs making up slightly over 2% of this figure. Meanwhile, hybrids are catching up, also approaching a 2% market share, largely led by Toyota Motor.
Amidst these developments, Hyundai is intensifying its focus on India, where it is planning a $3 billion IPO. This increased investment comes as the company reduces its operations in China after years of losses and following the sale of its two plants in Russia.
These discussions about mid- and long-term strategies for the Indian market, including the plans for EVs and hybrids, were a topic of conversation during Hyundai Motor Group Executive Chair Euisun Chung’s recent visit to India—his second in less than a year. For Hyundai, India remains a critical market, ranking as the third-largest source of revenue after South Korea and the United States.
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