Hyundai has priced the electric version of its massively popular SUV close to the Rs 20 lakh range, where it has been forced to compete with tailormade SUVs that outclass it in terms of features and specifications.
15 Jul 2025 | 684 Views | By Glenn Noronha, Ashin Shaji & Anurag Chaturvedi
In a bustling South Mumbai showroom of Hyundai, two versions of the same vehicle tell starkly different stories. The Hyundai Creta, a mid-size SUV that has dominated the mid-size SUV category since its introduction in 2015, continues its victory march, notching up another 16,000 to its 1 million-plus sales tally.
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In a bustling South Mumbai showroom of Hyundai, two versions of the same vehicle tell starkly different stories. The Hyundai Creta, a mid-size SUV that has dominated the mid-size SUV category since its introduction in 2015, continues its victory march, notching up another 16,000 to its 1 million-plus sales tally.
Barely 10 metres away, its electric twin sits in a quieter corner. The contrast is striking: Hyundai sells more of the standard Creta in a day than it does the electric version of the model in an entire month. Indeed, in the first six months since launch, the Korean carmaker has managed to sell only around 4,000 of these electric cars, compared to nearly 1 lakh (100,000) units for its ICE counterpart during the same period. In fact, the ICE variant hit its highest ever domestic sales at 18,522 units in January 2025.
The EV, on the other hand, seems to be heading in the other direction. Soon after bookings were started in January, Creta EV sales spiked at around 850 units in March, going by data from Federation of Automobile Dealers Association. Since then, they have been on a downward trend, dropping first to 677 in April, and then to 606 in May and finally, to 512 in June 2025, according to FADA.
This gives Hyundai a share of just 3.9% in India’s electric car market, a far cry from its target of 15%. Similarly, against the 10% electric penetration projected for the Creta at the time of launch, EVs made up only around 3.2% of the total Cretas sold in June.
The biggest problem ailing the model seems to be one of identity crisis: At a starting ex-showroom price of around Rs 18 lakhs, the EV is priced about 30% above the ‘mainstream’ of the EV segment in India, inhabited by models such as Tata Nexon (Rs 12.49 lakh) and MG Windsor (Rs 13.99 lakh).
At the same time, Creta EV cannot be clubbed with the more expensive, premium models such as Mahindra BE 6 and Tata Harrier because of its underwhelming features and specs.
This ‘positioning’ confusion is not just a matter for Hyundai’s marketing executives to worry about, but a real dilemma for buyers. "At this price, I expect the best, not just the basics,” pointed out a finance professional and car enthusiast. Like many other potential customers, the Kolkata-based professional was disappointed by the features and specifications on offer.
“When a key rival is promising all-wheel drive and a massive range, why would I settle for a front-wheel-drive-only setup? It doesn't feel future-proof,” he asked, referring to Tata Harrier EV, which ranges from Rs 21.50-27.50 lakh.
His reaction is not unique or isolated, according to our channel checks. A senior sales advisor at a Hyundai dealership in South India said the Creta EV's entry-level EC variant has seen very low bookings.
The dealer explained that most customers walk in excited about an electric Creta, but their enthusiasm wanes when they see the EC variant in person. “The basic specification feels inadequate for the price point,” he said.
In the end, customers who walk in for the EV end up booking diesel SX variants or even the Verna CVT instead, he said.
A shopfloor manager in Mumbai confirmed a similar trend, adding that the Creta Electric often serves as a footfall driver, with customers often opting for the petrol or diesel version in the end. One senior manager noted: "65% to 70% of EV inquiries end in a switch to the ICE model, primarily due to lower upfront costs for a familiar design and feature set."
| Model | Price Range (₹ lakh) |
Battery (kWh) | Motor Power (kW) | DC Charging Speed |
|
MG Windsor |
13.50-15.50 |
52.9 |
100 |
60kW |
|
Tata Curvv EV |
17.49-21.99 |
55 |
123 |
70kW |
|
Creta Electric |
17.99-23.49 |
51.4 |
126 |
50kW |
|
Mahindra BE 6e |
18.90-23.50 |
59-79 |
210 |
180kW |
|
Tata Harrier EV |
21.49-27.49 |
65-75 |
175-291 |
120kW |
The Problems of the ‘Convert’
The feedback from potential customers and salespeople suggest that in the Rs 20-24 lakh segment, expectations remain high, leaving little room for compromise. Creta’s evolution—from an ICE SUV to an EV—poses particular challenges.
They point out that the Creta Electric is not a purpose-built EV, but a conversion of its existing internal combustion engine (ICE) platform. While this approach is cost-effective, it has resulted in design compromises and perception issues. For example, even though the ground clearance remains decent at 190mm, a visible battery pack beneath the chassis is perceived as an aesthetic flaw.
"I was genuinely excited for it, but the first thing I noticed was the exposed battery pack underneath,” noted another enthusiast. “It looks like an afterthought, and makes you constantly worry about scraping it on our infamous speed bumps," he added.
Part of the reason for such reactions may be simply the stage at which the Indian electric car market remains. Like in the case of other technological shifts, the initial buyers tend to be the early adopters—the truly savvy customers who want it all. Unfortunately for Hyundai, the Creta EV’s launch was accompanied by the launch of several purpose-built EVs, leaving converted ICE vehicles looking increasingly outdated.
This sentiment was reflected in the words of another potential customer: "Why should I pay such a premium for an electric car that feels like a compromise. It’s the same Creta I know, but with a battery pack shoehorned in and a much higher price tag. It makes more sense to just buy the top-spec petrol and save a fortune!"
Market research indicates that a potential EV customer dedicates at least 3-4 weeks to comprehensive cross-brand comparisons before making a purchase decision, and walks into the showroom with data sheets and spec comparisons. Moreover, the buzz is increasingly dominated by rivals that promise a generational leap in technology, putting the Creta EV's more conservative feature set under the shade.
Hence, says a South India-based car dealer, Creta’s price range of Rs. 17.99–24.38 lakh positions it at a premium that demands compelling value justification. “Creta EV lacks a distinct electric vehicle identity, failing to make customers feel they are purchasing something futuristic. The design essentially appears as another Creta that happens to be electric, rather than a purpose-built EV with unique characteristics,” he said.
In all this, Hyundai’s traditional calling card—its reputation for quality and service—seems no longer to be a decisive differentiator, as the early adopter crowd seem to be only too eager to trade in brand loyalty for technical superiority—such as charging speed and battery capacity.
“They chose an NMC battery. My research shows LFP chemistry, which Tata and others use, offers better longevity and is safer in our hot climate. But the absolute deal-breaker for me? No lifetime warranty on the battery. Competitors are offering it, and that peace of mind is non-negotiable on a multi-lakh rupee investment," noted a car enthusiast.
Similarly, the market is increasingly showing a preference for brands that demonstrate clear electric vehicle expertise and innovation, suggesting a higher degree of consumer discrimination than initially anticipated.
"While competitors offer a broader range of EVs at different price points, Hyundai's electric offerings are limited to the Creta and the higher-priced Ioniq 5,” pointed out a Hyundai dealer in Mumbai.
In addition to product and positioning problems, the Creta roll-out has also had its fair share of roll-out related hiccups.One dealer mentioned receiving demo cars almost two weeks late, creating a problem since EV customers behave differently from ICE customers. He pointed out that such customers refuse to book without comprehensive test drives and detailed charging explanations, making the demo vehicle crucial for sales conversion.
The dealer also noted that variant naming conventions using EC, EM, and EL designations are unfamiliar to customers, with features appearing to jump in seemingly random ways across variants. This has created difficulty in defending the value proposition to potential buyers, he noted.
Moreover, he pointed out, marketing materials struggled to communicate electric-specific benefits beyond environmental impact, often failing to address the technological advantages and unique ownership experience that electric vehicles can provide.
Other limiting factors include Hyundai's comparatively slower rollout of public charging partnerships and lack of highly trained sales staff. A Mumbai-based dealer pointed out that EV sales require specialized knowledge and systems—things that many dealerships are still developing. In many cases, he pointed out, knowledgeable customers often know more about charging technologies than the sales personnel.
The path forward requires a comprehensive reimagining of Hyundai's approach to the electric vehicle market, moving beyond traditional automotive strategies to embrace the unique demands of EV customers.
Developing clearer variant differentiation and value proposition communication becomes essential, as customers need to understand exactly what they're paying for at each price point. Accelerating dealership training programs for EV-specific customer education will help bridge the knowledge gap that currently undermines sales conversations.
Strategic partnerships with charging infrastructure providers should offer comprehensive ecosystem solutions rather than fragmented charging options, addressing one of the primary barriers to EV adoption. Similarly, pricing adjustments for entry-level variants may be necessary to improve market accessibility and compete effectively with emerging EV brands.
Enhancing design elements that clearly differentiate the electric variant from its ICE siblings will help establish the unique identity that EV customers seek.
Meanwhile, the real test for Hyundai will come in 2026, with the planned launch of a mass-market EV built on a dedicated electric platform. The company's ability to translate its legacy dominance into the electric era will depend on its willingness to evolve its product strategy and match the expectations of India's increasingly discerning EV customers. Until then, the two Cretas will continue to coexist in Indian showrooms—one a testament to past success, the other a reminder of the challenges ahead.