Hyundai Plans Electric 3-Wheeler Entry in India, May Partner with TVS Motor

Key Highlights

• Hyundai may partner with TVS Motor for electric three-wheeler development.
• Hyundai will handle design and engineering; TVS may handle manufacturing.
• Plans to showcase last-mile mobility concepts at Bharat Mobility Show.
• Electric three-wheeler market grew 20% with 631,000 units sold in 2024.
• Hyundai aims to expand its presence in India’s EV and last-mile mobility segment.

Hyundai Motor India Ltd (HMIL) is exploring the electric three-wheeler market as part of its push for last-mile mobility and zero-emission vehicles. Sources reveal that Hyundai is in discussions with TVS Motor for a potential partnership. The two companies may jointly develop an electric three-wheeler, with Hyundai focusing on engineering and design while TVS handles local manufacturing under a contract agreement.

Hyundai’s Vision for Electric Last-Mile Mobility

Hyundai aims to expand its presence in India's growing electric vehicle (EV) market by targeting the last-mile mobility segment. This move aligns with its strategy to be “more Indian in India” and strengthen its foothold in one of the world's largest automobile markets. The company is expected to showcase its last-mile mobility concepts at the upcoming Bharat Mobility Show.

Partnership Details Under Discussion

While the specifics of the Hyundai-TVS partnership are not confirmed, it is believed that Hyundai's micro-mobility vehicle architecture will be shared with TVS. This approach resembles TVS's collaboration with BMW for two-wheelers, where TVS uses BMW’s architecture for select models.

TVS is also keen on the electric three-wheeler space and plans to launch its own model in 2025. If the partnership goes through, it could fast-track the development of Hyundai's electric three-wheeler and boost TVS’s ambitions in the segment.

Hyundai’s Global Mobility Platform: Shucle

Hyundai’s entry into this segment might also set the stage for introducing its ride-pooling service, Shucle, in India. Shucle, launched in South Korea in 2021, is an AI-driven platform that offers flexible shuttle services based on real-time demand. With a rapidly growing electric three-wheeler market in India, Hyundai could adapt Shucle to the Indian market to enhance urban mobility solutions.

Growing Competition in the Segment

India’s electric three-wheeler market is currently led by Mahindra & Mahindra, which holds over 40% of the market share. Other key players include Bajaj Auto, Ola Electric, Hero MotoCorp, and startups like AltiGreen and Euler. Hyundai’s entry, backed by its engineering expertise and potential partnership with TVS, could shake up this competitive landscape.

Why Electric Three-Wheelers Are Thriving

The electric three-wheeler segment has shown remarkable growth, with over 631,000 units sold from January to November 2024, up 20% compared to last year. This surge is driven by lower ownership costs, government incentives like FAME-EMPS and PM E-Drive schemes, better financing options, and increased demand from fleet operators and last-mile logistics.

Passenger-carrying e-rickshaws and cargo-focused models dominate the segment, offering affordable and sustainable transportation solutions. As sales approach the 700,000-unit milestone for 2024, it’s clear that the segment is crucial to India’s EV transition.

High-Level Discussions on Mobility

Hyundai Motor Group’s Executive Chair, Euisun Chung, recently met Indian Prime Minister Narendra Modi to discuss future mobility opportunities. This meeting, combined with Hyundai’s Indian subsidiary being listed on the National Exchange, underscores the company’s commitment to the Indian market. The decision to explore electric last-mile mobility solutions likely stems from these strategic discussions.

Also Read: Eberspaecher Opens New Plant in Poland for Hybrid and Electric Bus Thermal Systems

CMV360 Says

Hyundai's possible collaboration with TVS Motor signals its intent to establish a strong presence in India’s electric last-mile mobility market. With a focus on innovation, sustainability, and local partnerships, Hyundai is well-positioned to contribute to the nation’s EV transition and compete in this rapidly growing segment.

Stay tuned for updates on Hyundai and TVS Motor’s plans to electrify India’s last-mile mobility sector.