Hyundai Motor India is preparing to roll out an all-new mass-market electric SUV from its Chennai plant. The vehicle, internally codenamed HE1i, is expected to make its global debut by the end of 2026 and will be developed specifically for Indian customers, according to industry sources.
Positioned in the compact SUV segment, the model is expected to rival offerings such as the Tata Punch EV and could eventually be exported to select international markets. Sources said the SUV will be heavily localised from the outset to enable competitive pricing. It will be based on Hyundai Motor Group’s entry-level global E-GMP (K) electric vehicle architecture, adapted to suit Indian operating conditions and consumer requirements.
Heavily Localised
The product plans come close on the heels of Hyundai’s announcement to position Tamil Nadu as its flagship EV manufacturing hub for India, supported by fresh investments in localisation, supply-chain development and workforce training.
The company reiterated its previously announced commitment to invest more than ₹26,000 crore in Tamil Nadu between 2023 and 2032 as part of its broader ₹45,000 crore investment programme for India. The investments will focus on manufacturing expansion, localisation and future mobility technologies.
Hyundai has already established a battery sub-assembly facility for EV powertrains in the state and is stepping up localisation of power electronics and other critical EV components in partnership with Exide.
The company currently sources about 82% of components locally and aims to raise localisation levels to 90% over the next five to six years for its India line-up.
As part of efforts to deepen its supplier ecosystem, Hyundai plans to increase procurement from Tamil Nadu-based vendors by around ₹4,000 crore over the same period, a move expected to create nearly 2,000 additional jobs.
Local Supplier Ecosystem
“Alongside advancing EV localisation, we are equally focused on developing a future-ready skilled workforce, enabling talent to support future automotive technologies,” said Tarun Garg, Managing Director and CEO, Hyundai Motor India.
The company also announced an expanded collaboration with the Tamil Nadu government on skill development. The initiative, expected to commence operations in December 2027, will work with industrial training institutes, polytechnics and engineering colleges to impart training in EVs, hydrogen mobility, robotics, automation, AI-enabled manufacturing and smart manufacturing technologies.
On charging infrastructure, Hyundai said it currently operates 39 DC fast-charging stations with 78 charging points across Tamil Nadu and plans to expand the network across major cities and highways over the next two to three years.
