Taking notes from the market leader Maruti Suzuki, the country’s second-largest carmaker Hyundai Motor India has unveiled plans to enter the hybrid vehicle segment by 2027. As per sources, Hyundai wants to introduce hybrid versions of its popular models. These models could most certainly include the Creta, Venue, Verna, Exter and also the Tucson. Previously, the company announced that it would focus solely on pure electric vehicles (EVs). However, it is now focusing on hybrids as well.
Hybrid Technology Integration
According to Autocar India sources within the company, the decision to offer hybrid technology is a result of the growing demand for hybrid vehicles. Over the past few months, hybrid vehicles have become increasingly popular globally and, particularly, in India.
Euisun Chung, the executive chairman of Hyundai Motor Group, recently addressed employees in India. He outlined the pivotal role hybrids will play in the company’s future portfolio alongside electric vehicles.
Models that could go hybrid
The introduction of hybrid powertrains is expected to initially target Hyundai’s midsize SUVs and sedan models. These include popular vehicles like the Creta, Alcazar, Verna, and the larger Tucson SUV. The company could also introduce the hybrid technology to the Venue and Exter sub-compact SUVs as well.
Addressing Emission Challenges
According to reports, one of the key driving factors behind Hyundai’s decision to go the hybrid route are emission norms. Currently, meeting the emission norms for the BS6 diesel engines has proven very costly for the brand.
So, with the impending challenge of meeting future emission standards, especially for diesel engines, post-2027, it will become even harder for the brand to justify the development of diesel engines.
Hence, the adoption of hybrid technology presents itself as a better solution. With the introduction of hybrid vehicles, the company aims to address these emission regulatory requirements. Also, running costs of petrol strong hybrid cars will be comparable – if not cheaper – than those of diesels.
Government support for hybrids
Recently, Union Transport Minister Nitin Gadkari batted for lower taxes on strong hybrid cars. If Mr. Gadkari’s proposal goes through, hybrid cars could get substantially cheaper, making them more attractive than even electric cars, which currently enjoy a massive government subsidy. The proposed lower taxation on hybrid cars could also be another factor weighing on Hyundai’s decision to go hybrid.
Investment and Future Plans
As per the reports, Hyundai has pledged a substantial investment of Rs 33,000 crore over the coming decade in India. The company with this investment is aiming to focus on increasing production capacity and launching localized electric vehicles.
Hyundai Motor India also aims to roll out its first locally manufactured electric vehicle, based on the popular Creta model, within the next year, followed by a mass-market offering by 2026-27. Additionally, the company has also partnered with Indian battery maker Exide Industries to localize battery cells.
Market Dynamics
Over the last months, the hybrid vehicle market in India has witnessed steady growth. The sales of hybrid vehicles have reached approximately 85,000 to 90,000 units during the financial year 2023-24. This has accounted for a small but still significant sales share of 2% of the total sales in the country.
Hyundai’s closest competitor, Maruti Suzuki, in collaboration with Toyota, has been actively driving the hybrid segment. Maruti Suzuki and Toyota have also aimed for substantial sales growth by the end of the fiscal year 2031.
Maruti Suzuki is also focusing on developing affordable hybrid technology. This includes the new series hybrid technology. Most likely, the upcoming Maruti Suzuki Swift fourth generation will be launched with a hybrid engine with a 12V mild hybrid system. The new Swift will be launched on May 9th.
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