Hyundai Motor India expects electric vehicles to account for more than 7% of its domestic sales within the next year, driven by the launch of its first EV designed and developed specifically for the Indian market.
Scheduled to arrive in the fourth quarter of 2026, the made-for-India electric SUV will join the Creta Electric and Ioniq 5 in Hyundai’s portfolio. The three models are expected to take the carmaker’s EV penetration close to the broader passenger vehicle industry.
“With the new EV, the Creta EV and the Ioniq put together, next year we could be very close to the industry penetration,” Tarun Garg, Managing Director and CEO of Hyundai Motor India, told Autocar Professional.
Electric passenger vehicles have accounted for around 7% of overall passenger vehicle sales in recent months. Hyundai currently trails the industry on EV penetration, but Garg expects the new model to narrow the gap within a year.
“I had said that 2026 and 2027 would be the two triggers for EVs. The triggers have started coming in. For the last two months, EV penetration has been around 7%, more models are coming and Hyundai is also coming in,” he said.
First EV Developed Specifically for India
Unlike the Creta Electric, which is based on the combustion-engined Creta, the upcoming model has been conceived as an EV specifically for Indian customers.
“This is the first EV developed and designed for India,” Garg said.
Hyundai Motor India Engineering is also taking on a larger role in the company’s product development programmes.
“HMIE’s role is continuously expanding, and I am hopeful that it will continue to play a bigger role,” he added.
Hyundai has not disclosed the model’s price, dimensions, battery capacity or driving range. The company has said it will be a localised electric SUV featuring a next-generation infotainment system and Level 2 driver-assistance technology.
“It will be a very good package, and there will be some industry-leading benchmarks that we are known for,” Garg said. “We want to bring the confidence that Hyundai has given customers in the internal-combustion space into the EV space.”
Creta Electric Volumes Improve
Creta Electric sales increased to around 1,000 units in August from an earlier monthly run rate of 400-500 units, according to Garg.
“We were doing only about 400-500 Creta EVs. Last month, we clocked 1,000 units, and we are looking at doing more,” he said.
Garg acknowledged that the Creta Electric arrived alongside several ground-up EVs with more distinctive designs. This made it harder for the model, which remains visually close to the combustion-engined Creta, to stand apart.
He said customers were returning to the Creta Electric after evaluating the newer models and becoming more familiar with their relative strengths and weaknesses.
New EV to Initially Use Svolt Cells
The upcoming model will initially use battery cells supplied by Svolt. Hyundai chose to proceed with the supplier to avoid delaying the programme, while its plans for domestic cell sourcing continue.
“We are already ready with the new EV using Svolt cells. Otherwise, the programme could have been delayed, and we did not want to delay the vehicle,” Garg said.
Hyundai subsequently plans to source locally produced cells through its association with Exide Industries.
“This is a very high-stakes EV for us. We need to be completely sure about the quality, price and all the other parameters,” Garg said. “Our commitment to localisation remains very much there.”
EV Buying Factors to Broaden
Garg expects purchase considerations in the electric vehicle market to extend beyond price and driving range as buyers gain experience and more global manufacturers enter the segment.
“So far, EVs have largely been about range and price. I think the key buying factors will change towards the customer experience, how the car communicates with the customer, connectivity and artificial intelligence,” he said.
“As more international manufacturers enter the EV space, customers will have more choices and a different ownership experience,” Garg added. “That is where Hyundai’s global technology can give us an advantage.”