Source: Gasgoo
In the Indian market, Hyundai Motor Group has expanded its strategy beyond electric vehicles with plans to launch its first hybrid vehicle in India as early as 2026 and expand its market share in the country.
Image source: Hyundai Motor
Hyundai Motor Group, which includes Hyundai Motor and Kia Motors, is evaluating the launch of a hybrid SUV model in India. The new car will be similar in size to the Creta, which is India’s best-selling midsize SUV. Both Hyundai and Kia are aiming to launch hybrid models in 2026 or 2027, and their electric vehicle plans in India market are also on track.
Hyundai Motor Group said in a statement to Reuters that, “It is committed to the future of electric vehicles and will optimize its product strategy in each market.” In India, Hyundai Group’s hybrid car sales have surged, prompting it to change its initial strategy of focusing solely on electric vehicles.
Hyundai and Kia currently sell only petrol and diesel cars and imported electric vehicles such as the IONIQ 5 and EV6 in India, and hopefully the launch of its first Indian-made electric vehicle in the country will completed by 2025. Producing electric vehicles in India has clear long-term strategic value for Hyundai and Kia, but underdeveloped electric vehicle manufacturing and charging infrastructure remain a challenge. Therefore, Hyundai wants to get a piece in the Indian hybrid market.
Another source said, “Hyundai Motor is using hybrid technology as a transition strategy because it already has the technology.” The company has now started customising the technology and make it suitable for the mainstream.”
Shin Yoon-chul, an analyst at Kiwoom Securities, said that for now, local brands are not offering competitive hybrid vehicles. Japanese rivals such as Toyota Motor Corp is still leading the field. “Hyundai and Kia have experience in producing hybrid cars and they can capture a certain market share in India.” According to Kiwoom, the market share of Toyota for Indian’s hybrid vehicles in 2023 is 78 percent, Maruti Suzuki is 20 percent and Honda Motor is 2 percent.
Image source: Toyota
Since Toyota launched its first hybrid SUV of the mainstream market in India in 2022, hybrid vehicles have become increasingly popular in the country as such models are cheaper , save more fuel and don’t have the hassle of recharging compared to pure electric vehicles and gasoline vehicles. In 2023, hybrid models will account for about 2% of total vehicle sales in India (4.1 million units). By comparison, the market share of electric vehicles in India is just over 2%.
Currently, Hyundai is the second-largest automaker in India, and the Indian market is Hyundai’s third largest source of revenue after the United States and South Korea. Hyundai Motor is betting big on the Indian market and considering an initial public offering of its Indian unit. Last month, the Chairman Euisun Chung of Hyundai Motor Group visited India to discuss long-term strategies.
