Hyundai Motor Group shifts strategy: hybrid cars for India by 2026

Hyundai Motor Group disclosed that the company is gearing up to launch its first hybrid cars in India as early as 2026. This shift in strategy comes as the South Korean auto conglomerate seeks to go beyond electric vehicles to cement its presence in the Indian market.

The group, which includes Hyundai Motor and Kia Corp, is considering launching a hybrid sport-utility vehicle in India. According to sources familiar with the matter, the proposed SUV which is expected to be similar in size to its popular mid-sized Creta SUV is currently under evaluation.

While Hyundai and Kia are progressing with their electrification plans for the Indian subcontinent, they are actively creating the framework for the launch of hybrid SUVs in the country by 2026 or 2027. As per media reports, Hyundai Motor Group stated that it was "committed to a future of electrified mobility and will optimise product strategies for each market".

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Currently, Hyundai and Kia only retail gasoline and diesel cars and imported EVs including the IONIQ 5 and EV6, respectively. However, with the new strategy in action, the conglomerate will launch its first India-made EVs in the world's third-largest car market in 2025.

Hyundai's decision to focus on hybrid vehicles that will employ a gasoline powertrain and electric motor is motivated by the rapidly rising demand for technology in India. The company is improvising its approach to the Indian market by moving away from a strategy that solely focuses on battery electric vehicles.

The adoption of EVs has been relatively slow in India primarily because of high prices and subpar charging infrastructure, prodding the company to adopt hybrids as an “interim strategy”. According to media reports, "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," adding that increasing consumer demand and acceptance of hybrids in recent months led to the shift.

Data shows that total car sales in India surpassed 4 million in 2023. Out of which, hybrids, led by Toyota Motor, accounted for nearly 2% of total car sales.

Hyundai's pivot to India includes plans for a USD 3-billion IPO, emphasising its long-term commitment to the Indian market. The decision follows a scaleback of production in China and the sale of its two Russian plants.

During his recent visit to India, Hyundai Motor Group Executive Chair Euisun Chung discussed mid and long-term strategies, including plans for electric and hybrid vehicles.

India stands as Hyundai's third-largest revenue generator after South Korea and the United States, and the company is strategically aligning itself to capitalise on the country's burgeoning automotive market by introducing hybrid vehicles alongside its electric vehicle lineup.