Get Ready for Change: Hyundai Motor Group's Hybrid Cars Headed to India by 2026

 

Hyundai Motor Group is planning to introduce its initial hybrid vehicles in India by as early as 2026, according to three sources. The South Korean auto group, which includes Hyundai Motor and Kia, is reevaluating its strategy to expand beyond electric vehicles and enhance its presence in a significant auto market. 

The sources, two of whom have direct knowledge of the plans, mentioned that the group is considering launching a hybrid sport-utility vehicle of a size comparable to its popular mid-sized Creta SUV in India. Hyundai, the second-largest carmaker in India, and Kia are both aiming to debut hybrid SUVs in 2026 or 2027, along with staying on schedule with their EV plans for the Indian market. 

Hyundai Motor Group stated to Reuters that it is dedicated to a future focused on electrified mobility and will adjust product strategies to suit each market's needs. The move towards hybrids, which utilize a gasoline powertrain and electric motor, is a response to the growing demand for this technology in India. 

This shift marks a departure from the group's initial strategy that concentrated solely on battery-electric vehicles. Hyundai and Kia, currently selling gasoline, diesel cars, and imported EVs like the IONIQ 5 and EV6, are actively preparing to launch their first India-manufactured EVs in 2025. 

However, due to slow EV adoption resulting from high prices and inadequate charging infrastructure, the companies are turning to hybrids as an interim solution. A source mentioned that Hyundai has hybrid technology in other markets and is adapting it for vehicles in India to make it more mainstream, driven by increasing consumer demand and acceptance of hybrids in recent months. 

In 2023, total car sales in India surpassed 4 million, with EVs representing over 2 percent and hybrids, primarily led by Toyota Motor, making up a 2 percent share. Hyundai is intensifying its focus on India, where it intends to launch a $3 billion IPO, amid scaling back production in China after years of losses and the sale of its two Russian plants. 

Discussions led by Hyundai Motor Group Executive Chair Euisun Chung during his recent visit to India, within less than a year, highlighted mid- and long-term strategies for the Indian market, encompassing EV and hybrid plans. India ranks as Hyundai's third most significant revenue source after South Korea and the United States.