Hyundai Motor Group said it plans to launch hybrid cars in India

Hyundai Motor Group plans to launch its first hybrid cars in India as early as 2026, three sources said, as the South Korean auto group steps up its strategy to look beyond electric vehicles and grow its presence in the key auto market. Change has been made.

Hyundai Motor and Kia Group are evaluating a hybrid sport-utility vehicle similar in size to its best-selling mid-size Creta SUV in India, two sources with direct knowledge of the plans said.

Hyundai, India’s second-largest carmaker, and Kia are both aiming to launch hybrid SUVs in 2026 or 2027, both sources said, adding that their EV plans for India are also on track.

In a statement, Hyundai Motor Group told Reuters it is “committed to the future of electrified mobility and will adapt product strategies to each market”.

The pivot to hybrids – which use a gasoline powertrain and electric motor – comes as Hyundai sees growth in sales of the technology in India, prompting it to move away from an initial strategy that focused solely on battery electric vehicles. it occurs.

Hyundai and Kia, which now sell only gasoline and diesel cars and imported EVs like the IONIQ 5 and EV6 respectively, are working to launch their first India-made EVs in the world’s third-largest car market in 2025.

But EV sales have been slow due to high prices and inadequate charging infrastructure, leading the company to turn to hybrids as an “interim strategy”, one of the sources said.

“Hyundai has hybrid technology in other markets. Now it has started work to mainstream that technology for cars in India,” the source said.

Total car sales in India to top 4 million in 2023, with EV share exceeding 2 per cent. Hybrids, led by Toyota Motor, are coming close, with a share of 2 percent.

Amid production cuts in China after years of losses and the sale of its two Russian plants, Hyundai is doubling down on India, where it plans a $3 billion IPO.

The discussion, hosted by Hyundai Motor Group Executive Chairman Euisun Chung during his second visit to the country in less than a year last week, discussed mid- and long-term strategies for India, including EV and hybrid plans.

India is Hyundai’s third largest revenue generator after South Korea and the United States.

© Thomson Reuters 2024