What's behind Hyundai Motor Group's potential launch of hybrid cars in India?

The conglomerate, which encompasses Hyundai Motor and Kia, is assessing a hybrid SUV that shares a size resemblance with its popular mid-sized Creta SUV in India.

Hyundai Motor Group has disclosed plans to introduce its inaugural hybrid vehicles in India by as early as 2026, as it broadens its focus beyond electric vehicles to bolster its presence in a crucial automotive market, according to three sources familiar with the matter.
Hyundai Motor and Kia, both under the Hyundai Motor Group umbrella, are reportedly examining the development of a hybrid sport-utility vehicle (SUV) with dimensions akin to their best-selling mid-sized Creta SUV in India. This insight comes from two sources with direct knowledge of the group's strategies.
The Shift in Strategy
Hyundai, the country's second-largest automaker, and Kia are targeting a rollout of hybrid SUVs either in 2026 or 2027, as revealed by the aforementioned sources. Additionally, they noted that the companies' electric vehicle (EV) plans for India remain on course.
In response to queries, Hyundai Motor Group conveyed to Reuters its steadfast commitment “to a future of electrified mobility and will optimise product strategies for each market.”
Rising Demand for Hybrids in India
This pivot towards hybrids, which utilise a combination of gasoline powertrains and electric motors, aligns with Hyundai's observation of an uptick in hybrid technology sales in India. This surge has prompted the group to veer away from its initial focus solely on battery electric vehicles.
Hyundai and Kia, presently offering gasoline and diesel cars alongside imported EVs such as the IONIQ 5 and EV6, are actively preparing to launch their first locally manufactured EVs in India, slated for 2025.
Despite these efforts, electric vehicle sales have faced sluggish growth due to factors like high pricing and an inadequate charging infrastructure. This circumstance has driven Hyundai to view hybrids as an “interim strategy,” as revealed by one of the sources.
Hyundai to Bring Hybrid Tech in India
The source emphasised that Hyundai already possesses hybrid technology in other markets and has initiated adaptation work to tailor this technology for Indian vehicles, aiming for broader market acceptance.
India's automotive landscape witnessed over 4 million car sales in 2023, with EVs accounting for slightly more than 2 percent of total sales. In contrast, hybrids, with Toyota Motor at the forefront, are gradually gaining ground, constituting around 2 percent of the market share.