Hyundai To Launch A Hybrid Car In India Amid Rivals' EV Onslaught

Hyundai Motor India Ltd. plans to launch its first hybrid car before this decade ends, amid an EV onslaught by primary rivals Tata Motors Ltd. and Mahindra & Mahindra Ltd.

That’s in addition to the 26 new and upgraded cars that the South Korean carmaker plans to launch by 2030.

During a post-earnings call on Friday, the Creta maker confirmed a strong hybrid car for India, joining the likes of Maruti Suzuki India Ltd. and Toyota India in offering the technology, but offered no clarity on a plug-in hybrid model.

“In India, no single technology can work across all segments. Hyundai has a multi-powertrain approach for India,” Tarun Garg, chief operating officer at Hyundai India, said during the earnings call. A self-charging hybrid, according to him, “is a clear opportunity for Hyundai”.

“More details will be revealed during our first investor day in September,” he said, refusing to divulge a timeline for the launch.

Globally, Hyundai offers a hybrid variant of some of its best-selling cars—including the Santa Fe, Tucson and Kona SUVs, and the Elantra sedan. Its plug-in hybrid line-up includes the Ioniq series of futuristic-looking cars.

The company plans to launch 26 new and upgraded cars—20 with internal combustion engines and six with electric powertrains—alongside the hybrid car by 2029-30. That’s at least one car per quarter for the next five years. Eight of these will be unveiled in the next couple of years.

Hyundai’s hybrid plans place the South Korean carmaker firmly in the camp of its Japanese peers and against Indian rivals. While Maruti Suzuki and Toyota believe in a multi-powertrain future with hybrids and electrics co-existing, Tata Motors and Mahindra see hybrids only as a stopgap to an electrified future.

In 2024, sales of hybrid cars in India rose 7% year-on-year to over 3.55 lakh units, while those of electric cars grew 18% to 1,07,645 units, according to VAHAN data.

Sure, there’s a base effect in play, but electric car sales in India are likely to double in 2025 due to a packed launch timeline.

For example, Mahindra—which had nary a presence in the EV space until last year—clocked 30,000 bookings of its new BE 6 and XEV 9e electric SUVs in just one day. That’s nearly a billion dollars earned. Likewise, Tata Motors (Harrier EV), Maruti Suzuki (eVitara) and even Hyundai (Creta Electric) are ramping up their electric offerings. Meanwhile, JSW MG Motor Pvt. has made significant inroads with its MG Comet, ZS EV and Windsor EV models.

Meanwhile, there are only five mass market hybrid cars in India—Maruti Suzuki Grand Vitara, Maruti Suzuki Invicto, Toyota Urban Cruiser Hyryder, Toyota Innova Hycross and the Honda City HEV. Still, they outsold EVs 3:1.

On Friday, Hyundai India shares fell 0.61% to Rs 1,825 apiece on the BSE even as the benchmark S&P BSE Sensex ended the day 0.22% lower at 82,348.96 points.