Hyundai’s executive chairman, Euisun Chung, informed employees that hybrid vehicles will play a crucial role in the brand’s future strategy, alongside its plans for electric vehicles (EVs).
Hyundai Motor India, the second-largest carmaker in the country, plans to enter the hybrid vehicle segment within the next three years. With a rising demand for hybrid vehicles globally and in India, Hyundai is now looking to integrate hybrid powertrains into its electrified future in India. This move is a departure from its previous strategy, which primarily focused on pure electric vehicles (EVs).
Euisun Chung, the executive chairman of Hyundai Motor Group, recently addressed employees in India, stating that hybrids will be a critical part of the company’s portfolio in the country, alongside electric vehicles. Chung outlined a long-term strategy for the Indian market during a town hall earlier this month.
Hyundai is expected to introduce hybrid powertrain options for its midsize SUVs and sedan in the future. Models like the Creta, Alcazar, Verna, and even the larger Tucson SUV could receive hybrid technology in the coming decade, according to sources familiar with the development.
Although Kia has committed to introducing hybrid vehicles in India, Hyundai had previously prioritized investment in pure battery electric vehicles over hybrid technology. However, with the rising costs associated with meeting future emission norms for diesel engines post BS6 Phase II, Hyundai now sees hybrid technology as a viable option for its midsize vehicles to remain competitive.
Hyundai has pledged to invest Rs 33,000 crore in India over the next decade and aims to create a capacity of 1.5 million vehicles by the end of the decade. The company plans to launch its first locally produced electric vehicle based on the Creta in less than a year, with a mass-market offering scheduled for 2026-27. Hyundai has also partnered with Indian battery maker Exide Industries to localize cells, ensuring more accessible pricing for its electric vehicles.
In the financial year 2023-24, approximately 85,000 to 90,000 hybrid vehicles were sold in India, accounting for 2 percent of total sales in the country. Maruti Suzuki, Hyundai’s closest rival, along with its global alliance partner Toyota, continues to lead the hybrid vehicle segment in India. Maruti Suzuki aims to achieve sales of about 7.5 lakh hybrid vehicles by the end of FY2031 and is already working on developing affordable hybrid vehicles.
R.C. Bhargava, chairman of Maruti Suzuki, has stated that Suzuki Motor Corporation in Japan has begun developing affordable hybrid technology to introduce compact vehicles with better fuel efficiency in India. Maruti Suzuki is also working on series hybrid technology to make hybrids more accessible in the country, and the Government of India has expressed the possibility of rationalizing taxes or cess on hybrid vehicles in the future to enhance their accessibility.
