Executive Chair Euisun Chung informed staff that hybrid vehicles will play a crucial role in the company’s future strategy.
Hyundai Motor India, the country’s second-largest car manufacturer, plans to enter the hybrid vehicle market within the next three years. As the global and Indian demand for hybrid vehicles increases, the company is shifting its strategy to include hybrid powertrains, marking a shift from its previous focus solely on electric vehicles (EVs).
Euisun Chung, the Executive Chair of Hyundai Motor Group, has communicated to the company’s employees in India that hybrid vehicles will be essential to the firm’s product lineup in the country, alongside electric vehicles. Chung outlined this strategy during a town hall in April, which focused on the long-term vision for the Indian market.
In the future, Hyundai Motor India is expected to introduce hybrid options in its mid-size SUVs, potentially updating models such as the Creta, Alcazar, Tucson, and Verna over the next decade, sources close to the matter revealed.
Previously, Hyundai had been ambiguous about adopting hybrid technology, focusing investments on purely electric vehicles. However, given the rising costs associated with meeting future diesel emission standards post-2027, the company recognizes the competitive advantage of hybrid technology for mid-size vehicles.
Internationally, Hyundai Motor is also expanding its hybrid initiatives. Jose Munoz, Hyundai’s Global COO, who also manages the North American market, has confirmed to the international press that the company will continue to enhance its hybrid programs due to strong customer reception.
A spokesperson for Hyundai Motor addressed inquiries by stating that Hyundai Motor Group is dedicated to a future of electrified mobility and plans to customize product strategies for different markets.
Hyundai Motor India has pledged an investment of Rs 33,000 crore over the next decade, aiming to achieve a production capacity of 1.5 million vehicles by the end of the decade. The company plans to launch its first localized electric vehicle based on the Creta in less than a year, with a mass-market model expected around 2026-27. Additionally, Hyundai has partnered with Indian battery manufacturer Exide Industries to produce localized cells and maintain affordable pricing.
In the fiscal year 2023-24, India saw the sale of approximately 85,000 to 90,000 hybrid vehicles, accounting for 2% of the total vehicle sales. Maruti Suzuki, Hyundai’s chief competitor, along with its global alliance partner Toyota Motor, continues to lead the hybrid vehicle segment in India. They anticipate selling about 750,000 hybrid vehicles by the end of FY31 and are working on affordable hybrid technology to offer compact vehicles with improved fuel efficiency.
The Indian government has also indicated potential tax adjustments on hybrid vehicles in the future to enhance their affordability.
