Hyundai Motor India will expand its SUV portfolio with the launch of an all-new mid-size SUV during the festive season this year, followed by a new mass-market electric compact SUV by the end of FY27, as the company looks to increase its market share in India’s fastest-growing passenger vehicle segment.
Hyundai India Managing Director and CEO Tarun Garg confirmed during the company’s Q1 FY27 earnings call that a new mid-size SUV will be introduced during the festive season. The launch comes ahead of the next-generation Creta, which is expected to arrive in 2027.
SUVs accounted for 70% of Hyundai’s domestic sales mix during the quarter and Hyundai is doubling down on this in order to attract more SUV buyers in its foray. The move reflects Hyundai’s strategy to deepen its presence in the highly competitive mid-size SUV segment rather than relying solely on the Creta.
Dual-Product Strategy
The strategy mirrors Maruti Suzuki’s approach in the segment, where the Victoris and Grand Vitara cater to different customer requirements. While Hyundai’s new SUV will focus on affordability and fuel efficiency, the next-generation Creta will continue as the brand’s flagship mid-size SUV with a broader range of powertrain choices.
With a second mid-size SUV, the company is looking to cater to a wider set of buyers by offering two distinct products in the segment—one positioned as a more affordable, value-oriented offering and the next-generation Creta which will be positioned at a more premium end of the segment. with multiple powertrain options, including a hybrid.
According to industry sources, the model will be powered by Hyundai’s familiar 1.5-litre naturally aspirated petrol engine, currently offered on the Creta and a few other Hyundai and Kia models, paired with either a manual or CVT automatic. Hyundai is also expected to introduce a factory-fitted CNG variant, making it the first CNG-powered Hyundai model in this segment. Sources added that the 1.5-litre turbo-petrol engine available on the Creta is unlikely to be offered on the new SUV. It also remains to be seen if this SUV gets a diesel engine option.
Accelerating Mass-Market Electrification
Following the festive-season launch, Hyundai will shift focus to electrification with an all-new compact electric SUV, internally codenamed HE1i. The model is expected to make its global debut by the end of 2026 and is being developed specifically for Indian customers. It will take on the Tata Punch EV and could later be exported to select international markets. The SUV will be based on Hyundai Motor Group’s entry-level E-GMP (K) electric vehicle architecture, adapted for Indian conditions and heavily localised to enable competitive pricing.
Hyundai has already established a battery sub-assembly facility in Tamil Nadu and is increasing localisation of power electronics and other critical EV components in partnership with Exide, supporting its broader electric mobility strategy in India
