EV Penetration in India to Accelerate by 2025-26: HMIL COO
ECONOMY & POLICY

EV Penetration in India to Accelerate by 2025-26: HMIL COO

Hyundai Motor India anticipates significant acceleration in the electrification of the passenger vehicle market in India by 2025 and 2026, according to Tarun Garg, Chief Operating Officer. As the company prepares to launch the electric version of its popular SUV, Creta, and plans to introduce four electric vehicles (EVs) in the future, it is also exploring opportunities across various market segments, including those below the mid-sized SUV category.

Garg highlighted that India is still in the early stages of vehicle electrification, noting that the sector achieved only 2.4 per cent electrification last year. He expressed confidence that 2025 and 2026 will be pivotal years for EV adoption, with the Creta EV playing a major role in driving this change.

In 2024, the Indian passenger vehicle segment experienced record sales of around 4.3 million units. Referring to an internal study and insights from external consultants, Garg projected that EV penetration could reach 17 per cent by 2030. He predicted a significant surge in EV volumes by 2026, potentially doubling from current levels, though the trend might start becoming evident by the end of 2025.

Explaining the optimism, Garg attributed it to the launch of competitive products from established Original Equipment Manufacturers (OEMs) during this period. In addition to Hyundai’s Creta EV, Maruti Suzuki India plans to debut its electric SUV, e VITARA, at the Bharat Mobility Global Auto Show in January 2025.

Garg emphasized that EV customers seek reliability, strong brand presence, and solutions to range anxiety. The Creta EV aims to fulfill these needs with two variants offering ranges of 390 km and 473 km, respectively. He also noted the proven brand equity of the internal combustion engine (ICE) version of Creta, which has sold 1.1 million units cumulatively.

When asked about expanding to segments below Creta, Garg refrained from specifying models but confirmed the company's intent to explore multiple segments, including both "Creta minus" and "Creta plus" categories. Presently, Hyundai is active in the luxury EV segment with its IONIQ 5, priced at Rs 460.05 million. The Creta EV is expected to cater to the Rs 1.5-2.5 million segment, a key contributor to passenger vehicle sales in India.

The company is also evaluating dedicated and derived EV models, aiming to establish a robust presence in the EV market comparable to its ICE offerings. Garg stated that Hyundai has developed a charging management system app, connecting both Hyundai and non-Hyundai customers to 10,000 charging points nationwide. Of these, 7,500 allow payment through the app. Additionally, Hyundai is rolling out in-car payment options using the AVNT system, with arrangements already made at 1,150 charging points.

To enhance highway charging infrastructure, Hyundai has installed 80 fast chargers at 30 locations on major routes such as Delhi-Chandigarh, Delhi-Jaipur, Mumbai-Pune, and Hyderabad-Vijayawada, addressing customer concerns about long-distance EV travel.

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Hyundai Motor India anticipates significant acceleration in the electrification of the passenger vehicle market in India by 2025 and 2026, according to Tarun Garg, Chief Operating Officer. As the company prepares to launch the electric version of its popular SUV, Creta, and plans to introduce four electric vehicles (EVs) in the future, it is also exploring opportunities across various market segments, including those below the mid-sized SUV category. Garg highlighted that India is still in the early stages of vehicle electrification, noting that the sector achieved only 2.4 per cent electrification last year. He expressed confidence that 2025 and 2026 will be pivotal years for EV adoption, with the Creta EV playing a major role in driving this change. In 2024, the Indian passenger vehicle segment experienced record sales of around 4.3 million units. Referring to an internal study and insights from external consultants, Garg projected that EV penetration could reach 17 per cent by 2030. He predicted a significant surge in EV volumes by 2026, potentially doubling from current levels, though the trend might start becoming evident by the end of 2025. Explaining the optimism, Garg attributed it to the launch of competitive products from established Original Equipment Manufacturers (OEMs) during this period. In addition to Hyundai’s Creta EV, Maruti Suzuki India plans to debut its electric SUV, e VITARA, at the Bharat Mobility Global Auto Show in January 2025. Garg emphasized that EV customers seek reliability, strong brand presence, and solutions to range anxiety. The Creta EV aims to fulfill these needs with two variants offering ranges of 390 km and 473 km, respectively. He also noted the proven brand equity of the internal combustion engine (ICE) version of Creta, which has sold 1.1 million units cumulatively. When asked about expanding to segments below Creta, Garg refrained from specifying models but confirmed the company's intent to explore multiple segments, including both Creta minus and Creta plus categories. Presently, Hyundai is active in the luxury EV segment with its IONIQ 5, priced at Rs 460.05 million. The Creta EV is expected to cater to the Rs 1.5-2.5 million segment, a key contributor to passenger vehicle sales in India. The company is also evaluating dedicated and derived EV models, aiming to establish a robust presence in the EV market comparable to its ICE offerings. Garg stated that Hyundai has developed a charging management system app, connecting both Hyundai and non-Hyundai customers to 10,000 charging points nationwide. Of these, 7,500 allow payment through the app. Additionally, Hyundai is rolling out in-car payment options using the AVNT system, with arrangements already made at 1,150 charging points. To enhance highway charging infrastructure, Hyundai has installed 80 fast chargers at 30 locations on major routes such as Delhi-Chandigarh, Delhi-Jaipur, Mumbai-Pune, and Hyderabad-Vijayawada, addressing customer concerns about long-distance EV travel.

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