- Both Hyundai and Kia are planning to launch hybrid SUVs in India in 2026 or 2027.
- The car giant is also working to develop locally-built EVs for the world’s third-largest car market.
- Hyundai wants a slice of the hybrid market that is currently dominated by Toyota.
While many car manufacturers and governments around the world are going all-in on battery-electric vehicles, Hyundai is planning more moderate steps into electrification in India with the launch of its first local hybrid vehicles.
Unnamed sources believe the South Korean car giant is assessing the possible launch of a hybrid SUV similar in size to the Creta. It is understood that both the Hyundai and Kia brands are working on hybrid SUVs in China, with a plan to launch them in 2026 or 2027.
Read: Kia Confirms 3 New EVs For India, Including Carens
Like in other markets, Hyundai has noticed a jump in demand for hybrid vehicles in India. As such, it is looking to cash in on this demand while continuing to push forward with its plans to introduce battery-electric vehicles in the world’s third-largest car market. It considers its hybrids as an interim strategy and according to a source who spoke with Reuters, “wants to get dibs on India’s hybrid market.”
“It has now begun work on tailoring this technology for cars in India to make it mainstream,” the source added.
Toyota has a 78% share of the hybrid market in India, followed by Maruti Suzuki with 20% and Honda Motor with a 2% share. Hybrid models accounted for roughly 2% of India’s total car sales in 2023 and while EVs made up a little more than 2%, demand for hybrids has recently surged. This comes despite the fact they are hit with a 43% domestic goods and services tax compared to the 5% tax on EVs.
Kiwoon Securities analyst Shin Yoon-chul believes Hyundai and Kia can command a significant share of the hybrid market in India. In a statement, Hyundai said it was “committed to a future of electrified mobility and will optimize product strategies for each market.”
While Hyundai is no longer focusing solely on BEVs for India, it remains committed to them. It currently imports the Ioniq 5 and Kia EV6 into the country and is planning to launch its first locally-built EVs as soon as 2025.
