Hyundai’s new discipline: Reading India’s EV and hybrid curve in its own time

Hyundai Motor India is signalling a subtle but significant shift in how it views India’s technology ramp-up: electric vehicles will mature before hybrids take off in a big way. For MD & CEO Designate Tarun Garg, the logical sequence of technology rollout matters, as does the shape of the vehicles that will carry those technologies.

At a recent roundtable, Garg noted that while hybrids will have their moment, in the near term, the biggest growth driver is EVs. He pointed out that EV penetration in India was stuck at around 2.5 per cent until recently; this year, thanks in part to government-led incentives such as the PM eDrive scheme and the rapid expansion of charging infrastructure (22,000 new charging points), it has climbed to about 6 per cent.

That, he implied, is proof enough that the underlying ecosystem is developing faster than many expect. Rather than rushing to hybrids as an intermediate step, Hyundai prefers to lay down an electrification foundation first.

He reiterated Hyundai’s commitment to introduce five EVs by 2032, including a dedicated India-specific EV by 2027, and to localise key EV components, including battery packs, power-electronics, and drivetrain modules. It’s not just about selling electric cars; it’s about building an EV ecosystem on home ground.

Reading the Grey Space

Hyundai isn’t simply thinking about electrification in terms of powertrains. Its product-planning framework is also evolving to accommodate what Garg calls the “grey space", that un-defined territory between segments, where buyers don’t care as much about labels as about proportions, performance and presentation.

He pointed out that micro-SUVs didn’t even exist in India five years ago, and yet today they contribute nearly 6 per cent of volume. That kind of sub-segment emergence changes the rules. New derivatives, new variants, stretched platforms all are part of Hyundai’s strategy to occupy adjacency, not just traditional segment bins.

The logic is straightforward: buyers want crossover-feel, premium touches, and utility without paying premium-SUV taxes. By pursuing models that blur the boundaries between hatchback-compact and SUV-compact, Hyundai strengthens its ability to pivot its product stack.

The portfolio play: SUVs, MPVs and beyond

Hyundai's dual strategy is clear: electric for the future, SUV for the scale. Hyundai continues to lean heavily on the SUV and MPV axis for scale. Its SUV contribution in India has climbed to 71 per cent of its volumes, well above the industry average. Garg recalled that once upon a time SUVs made up a small fraction of India’s sales; today they dominate.

Looking ahead, Hyundai’s FY30 roadmap reinforces that commitment. The company has committed to 30 new models by 2030, including seven new nameplates, and has lined up eight hybrid models to sit alongside its EV pipeline.

This isn’t incremental expansion: it is a statement of intent to deepen presence in crossovers, MPVs, off-road-style volumes, and new ownership propositions. By 2030, Hyundai expects more than 80 per cent of its portfolio to comprise SUVs and MPVs, with over half its future models powered by greener and alternative drives (EVs + hybrids). That dual push - new body types added with new powertrains, is Hyundai’s way of balancing volume ambition with shifting regulatory and consumer preferences.

The new siscipline: Every model must count

What underpins Hyundai’s strategy is a discipline Garg returned to again and again: you have to make every model count. Every variant, every derivative, every full-model change must contribute, it is no longer enough to launch a halo model and ride its tailwinds.

As a listed company with global shareholders watching, Hyundai is moving beyond volume-for-volume’s-sake. It is tightening the link between product investment and long-term profitability. Its hybrids, EVs, MPVs, compact SUVs, even grey-space derivatives are expected to justify their place in the line-up not just through novelty but through sustained sales, margin contribution, and customer relevance. That sense of “quality of growth" shows that Hyundai believes maturity in India will come not by flooding the market but by layering options thoughtfully.

The big picture: India as strategy, not geography

Ultimately, Hyundai’s message is clear: India is no longer just a sales territory. It is part of the company’s core strategy. The company has committed almost ₹45,000 crore by FY2030 toward product development, localisation, manufacturing capacity, and EV and hybrid ecosystem enabling. It has announced dozens of models, multiple new nameplates, and an expanded hybrid-EV roadmap. Its Pune plant expansion, Chennai operations, and increasingly localised R&D / engineering base are all part of a vision where India is not peripheral, it is central.

Exports are also increasing. Hyundai aims to raise its export contribution significantly. With India’s capacity rising and new models being developed here first, it is inching toward becoming a global hub rather than just a domestic volume driver.

By 2030, the company sees itself with a larger share of greener mobility offerings, deeper product breadth (more SUVs, MPVs, off-road-style options), and a business model that integrates shareholder expectations with social / regulatory imperatives.

In choosing to prioritise EVs today, then hybrids later; in seeing opportunities in grey-space body styles; in insisting that every model “pays its way"; Hyundai is making India not just a production or consumption base, but the blueprint for its future.

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