Hyundai Motor Group is Planning to Launch Hybrid Cars in India by Early 2026

Hyundai Motor Group plans to launch its first hybrid cars in India by early 2026, three sources said, as the South Korean auto group shifts its strategy to look beyond electric vehicles and expand its presence in a key auto market.

The group, which includes Hyundai Motor and Kia, is evaluating a hybrid sport-utility vehicle in India similar in size to its best-selling, mid-sized Creta SUV, two sources with direct knowledge of the plans said.

What sources revealed

Hyundai and Kia, India's second-largest carmaker, are both aiming to launch hybrid SUVs in 2026 or 2027, the two sources said, adding that their EV plans for India are on track.

In a statement, Hyundai Motor Group told Reuters it is "committed to the future of electrified mobility and will adapt product strategies for each market".

Hyundai Motor Group was more interested in hybrid cars

The shift toward hybrids - which use a gasoline powertrain and an electric motor - came after Hyundai saw a surge in sales of this technology in India, prompting it to shift from its initial strategy, which focused only on battery electric vehicles.

Hyundai and Kia, which now promote the best gas and diesel vehicles and imported EVs together with the IONIQ 5 and EV6 respectively, are running to launch their first India-made EVs inside the world's third-largest vehicle market in 2025.

But EV sales growth has been slow due to high prices and inadequate charging infrastructure, prompting the company to turn to hybrids as an "interim strategy," one of the sources said.

Hyundai Motor Group Performance in India

"Hyundai has hybrid technology in other markets. It has now started working on making that technology ready for cars in India to bring it mainstream," the source said, adding that rising consumer demand and acceptance of hybrids in recent months led to the change.

Total car sales in India are set to exceed 4 million in 2023, with EVs accounting for more than 2 percent. Hybrids, led by Toyota Motor, are closing in on a 2 percent share.

Hyundai is doubling down on investments in India, where it plans a $3 billion IPO, amid a production cut after years of losses in China, and has sold its two Russian plants.

Medium and long-term strategies for India, including EV and hybrid plans, were discussed in discussions held by Hyundai Motor Group Executive Chairman Euisun Chung last week during his second visit to the country in less than a year.

India is Hyundai's third-largest revenue generator after South Korea and the United States.

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