Hyundai Motor India expects electric vehicles (EVs) to lead India’s transition towards cleaner mobility, while hybrids could emerge as a strong alternative to diesel in the coming years, according to Tarun Garg, Managing Director and CEO, Hyundai Motor India.
EVs Set to Drive the Transition
Garg said India’s diverse market will require multiple powertrain technologies rather than a single solution. EV penetration in passenger vehicles has risen to more than 7%, while hybrids remain at around 2.4-2.5%.
Hyundai’s upcoming A-segment electric SUV, scheduled for launch in Q4 2026, will be its first EV specifically developed and designed for India. It will join the Creta Electric and Ioniq 5, potentially taking Hyundai’s EV penetration closer to the industry level.
Garg also expects EV buying decisions to increasingly focus on:
- Customer experience
- Connectivity and AI
- Vehicle communication
- Technology, alongside price and range
CNG to Remain a Mass-Market Choice
Hyundai expects CNG to remain concentrated in vehicles priced below ₹15 lakh, where affordability and running costs are key considerations.
For higher-priced vehicles, customers are expected to prioritise performance, drivability, space and convenience.
Diesel Still Relevant for SUVs
Despite the shift towards electrification, Garg believes diesel will continue serving SUV buyers and frequent long-distance travellers over the next few years.
Hyundai plans to offer petrol, CNG, diesel, EV and other technologies depending on segment and customer requirements.
Hybrids Could Become the Next Diesel
Hyundai is evaluating hybrid technology across multiple segments and expects localisation and supplier readiness to improve affordability over the next couple of years.
Garg believes conventional hybrids could appeal to customers who value fuel efficiency and long driving range without requiring external charging.
For vehicles around ₹20 lakh, customers could potentially accept a 10-15% premium for hybrid technology, making hybrids a possible successor to diesel in the Indian market.
