Hyundai Motor Group plans to launch its first hybrid car in India as early as 2026, three sources said, as the South Korean auto group shifts its strategy to look beyond electric vehicles and boost its presence in key auto markets.
The group, which includes Hyundai Motor and Kia, is evaluating a hybrid sport utility vehicle similar in size to its best-selling midsize SUV in India, the Creta, two sources with direct knowledge of the plan said.
India’s second-largest automaker Hyundai and Kia both plan to launch hybrid SUVs in 2026 or 2027, two sources said, adding that their electric vehicle plans in India were also on track.
Hyundai Motor Group told Reuters in a statement that it was “committed to the future of electric vehicles and will optimize product strategies in each market.”
Hyundai’s move to hybrid vehicles, which use gasoline powertrains and electric motors, comes as it sees a surge in sales of the technology in India, prompting it to change its initial strategy of focusing solely on pure electric vehicles.
Hyundai Motor and Kia Motors, which currently sell only petrol and diesel cars and imported electric vehicles such as the IONIQ 5 and EV6 respectively, are working to launch the first Indian-made electric cars in the world’s third-largest car market by 2025.
But sales of electric vehicles have been slow to pick up due to high prices and insufficient charging infrastructure, prompting the company to turn to hybrids as a “temporary strategy,” one source said.
“Hyundai has hybrid technology in other markets. It has now started working on customizing the technology for Indian cars to make it mainstream,” sources said, adding that growing consumer demand and acceptance of hybrid vehicles in recent months had led to the shift.
In 2023, total car sales in India will exceed 4 million units, of which electric vehicles will account for more than 2%. Hybrid vehicles, led by Toyota Motor, are gradually approaching, with a market share of 2%.
Hyundai Motor Co. is doubling down on India, where it plans a $3 billion IPO, as it scales back production after years of losses in China and sells off two Russian plants.
Hyundai Motor Group Executive Chairman Chung Eui-sun discussed India’s mid- to long-term strategies, including electric vehicle and hybrid plans, during his second visit to India in less than a year last week.
India is Hyundai Motor’s third-largest source of revenue after South Korea and the United States.
© Thomson Reuters 2024
