May 02, 2024
Hyundai Motor Group is set to introduce its inaugural hybrid cars in India by 2026, marking a strategic move by the South Korean automotive conglomerate to expand beyond electric vehicles and fortify its presence in a pivotal market. The group, comprising Hyundai Motor and Kia Corp, is reportedly contemplating the launch of a hybrid sport-utility vehicle (SUV) akin in size to its popular mid-sized Creta SUV in India.
Both Hyundai, the second-largest carmaker in India, and Kia are eyeing a debut for their hybrid SUVs between 2026 and 2027, alongside their ongoing plans to roll out electric vehicles (EVs) in the country. The decision to embrace hybrid technology comes amid a notable uptick in hybrid car sales in India, prompting Hyundai to diversify its strategy away from a sole focus on battery electric vehicles.
Currently, Hyundai and Kia primarily offer petrol and diesel cars in India, supplemented by imported EV models such as the IONIQ 5 and EV6. However, the adoption of EVs in India has been slower than anticipated due to challenges like high pricing and inadequate charging infrastructure. In response, Hyundai is actively customising its existing hybrid technology for the Indian market, aiming to enhance accessibility and mainstream appeal.
India holds significant importance for Hyundai, ranking as its third-largest revenue generator after South Korea and the United States. Alongside its expansion plans, Hyundai is reportedly mulling a $3-billion initial public offering (IPO) and reassessing its production footprint, including potential scale-backs in China and divestment of its Russian plants.
The introduction of hybrid cars by Hyundai Motor Group underscores its commitment to offering diverse mobility solutions tailored to the needs of the Indian market.
