Slower-than-expected EV adoption, tight CAFE norms and ever-present efficiency demands are giving hybrids a second wind in India, and more than a dozen hybrid models are slated for launch by 2030.
09 Jul 2025 | 587 Views | By Ketan Thakkar & Hormazd Sorabjee
India’s electric vehicle (EV) market is gaining traction, with a 4 percent penetration rate as of May 2025. However, the road to achieving 30 percent EV adoption by 2030 remains complex, with challenges surrounding affordability, charging infrastructure and consumer readiness. To bridge this gap, all major carmakers – except Tata ...
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India’s electric vehicle (EV) market is gaining traction, with a 4 percent penetration rate as of May 2025. However, the road to achieving 30 percent EV adoption by 2030 remains complex, with challenges surrounding affordability, charging infrastructure and consumer readiness. To bridge this gap, all major carmakers – except Tata Motors and Stellantis – are investing in hybrid technologies.
Integrating internal combustion engines (ICE) with electric motors, strong hybrids deliver about 50 percent better fuel efficiency and 25-35 percent lower emissions than traditional ICE vehicles, without needing external charging. Corporate Average Fuel Economy (CAFE) norms compliance further incentivises hybrids, helping OEMs balance diesel-heavy fleets with lower-emission alternatives.
Hybrid powertrains also support India’s energy security goals, helping to reduce crude oil dependency (currently around 80 percent) and mitigate supply chain risks linked to Chinese-dominated battery and rare-earth materials. Strong hybrids and range extenders typically require smaller battery packs – often between 0.6 and 2kWh and 10 and 20kWh, respectively – compared to the 30-60 kWh used in full EVs.
This reduces dependency on critical minerals like lithium, cobalt and nickel. Many hybrid systems also avoid or reduce the use of rare-earth-intensive permanent magnet motors, opting instead for alternatives like induction motors, which are less geopolitically exposed. In an environment marked by trade uncertainties, export restrictions and concentration risks, hybrids enable OEMs to localise more components, strengthening domestic value chains while India’s EV supply ecosystem matures.
Several state governments have stepped in with policy support. For hybrids, Uttar Pradesh and Delhi offer road tax exemptions equivalent to EVs, while Haryana and Rajasthan provide 25 percent relief. Yet, the 43 percent GST on hybrids remains a bottleneck, compared to 5 percent for EVs.
Maruti Suzuki and Toyota
Suzuki and Toyota continue to lead India’s hybridisation through a shared strategy that plays to their respective strengths. Suzuki is developing series hybrid technology targeted at the compact car segment, with the Fronx series hybrid, powered by the 1.2L Z12E engine, expected to arrive around 2026-27. Meanwhile, strong hybrid systems remain the domain of Toyota, which has already localised the technology and is scaling it through its Indian operations.
The Y17, a crossover based on the Grand Vitara platform, is also in the works with a 1.5L strong hybrid (launch expected late 2025). The alliance is also preparing to introduce plug-in hybrids based on the new-generation 60PL platform, currently being localised at Toyota’s facility in Chhatrapati Sambhajinagar.
Toyota’s current hybrid line-up includes the Urban Cruiser Hyryder, Innova Hycross, Camry and the recently launched Fortuner MHEV (2.8L diesel mild hybrid). In April 2025 alone, the Toyota-Suzuki alliance commanded 82 percent of India’s hybrid market, selling 7,007 units, underscoring its leadership and growing momentum in the space.
Hyundai and Kia
Recognising the current infrastructure limitations for EVs and growing regulatory pressure under CAFE Phase 3 norms, the Hyundai Motor Group is developing a line-up of four hybrid SUVs aimed at delivering both efficiency and scale across domestic and export markets.
On the Hyundai side, a new 3-row SUV (codename: Ni1i) is under development, designed to slot above the Alcazar and cater to growing demand for family-oriented utility vehicles. This model is expected to feature a 1.6L petrol-hybrid powertrain. The next-generation Creta, due around 2027, will also have a 1.5L petrol-hybrid option.
For Kia, two hybrid SUVs are in the pipeline: the Seltos, a key volume driver for Kia in India, will receive a strong hybrid variant (SP3i), and a larger 7-seat SUV based on the global Sorento (codename: MQ4i) is expected to launch by 2026-27, built on a hybrid-compatible platform that will be shared with Hyundai.
Mahindra & Mahindra
Alongside its EV ambitions, Mahindra is pursuing strong hybrids and range-extender hybrids. It is developing a 1.2-litre turbo petrol strong hybrid for the XUV 3XO, targeted for launch in 2026. Also planned is a range-extender variant for the XUV.e9, using a 1.5L petrol engine as on-board generator. The range-extender tech allows Mahindra to leverage its existing EV platforms with fewer modifications, as the gearbox and driveshafts won’t be involved.
Honda
Honda’s initial hybrid foray in India with the City e:HEV – powered by a 1.5-litre strong hybrid engine and delivering 26.5kpl – was more a signalling exercise than a market-defining product. While the model showcased Honda’s global hybrid capabilities, its imported components and resultant pricing limited its commercial success.
Honda is now recalibrating its hybrid strategy, and at the core of this shift is the PF2 platform, a modular, hybrid-compatible architecture that will form the basis of Honda’s future product portfolio in India. Upcoming models based on PF2 are expected to be significantly localised.
The company is likely to use PF2 to launch a new range of SUVs and crossovers, including the all-new City, tailored to the Rs 15 lakh-30 lakh segment. This also aligns with Honda’s global shift, as the company has reinforced its commitment to scale hybrid offerings across key markets as part of its broader electrification roadmap.
Renault-Nissan
The Renault-Nissan Alliance is undergoing a strategic overhaul in India, and central to this roadmap is the CMF-B platform, a global modular architecture tailored for emerging markets. It supports multiple powertrain types – including internal combustion, strong hybrids and electrics.
Spearheading this revival is the next-generation Renault Duster, slated for launch in 2026. While the model will initially debut with ICE powertrains, a strong hybrid variant is expected to follow within six months.
Following the Duster will be a 3-row SUV codenamed Boreal, also built on the CMF-B platform and expected to adopt a similar phased rollout; ICE followed by hybrid.
Skoda-VW
The Skoda-Volkswagen Group is expected to enter India’s hybrid segment by 2027-28, with new models likely underpinned by the IMP21 platform – an evolution of the CMP architecture from China, designed to support ICE, strong hybrid and electric powertrains. While specifics remain under evaluation, the midsize SUV segment will likely be addressed.
Emerging Contenders
Beyond legacy OEMs, new players are entering the hybrid fray. MG Motor, backed by JSW’s 35 percent stake, is evaluating a hybrid Gloster SUV by 2026 and plans a bevy of what it terms New Energy Vehicles that basically comprise strong hybrids, plug-ins and EVs. BYD, a global leader in plug-in hybrids, may also introduce the Seal U DM-i in India, while Lexus, Toyota’s luxury brand, already offers the ES 300h and may expand its line-up to include the NX hybrid SUV.