The compact and mini electric car segment is set to become the next arena of competition as automakers look to emulate the unrivalled dominance of Maruti Suzuki in this category on petrol engines.
While the battle among carmakers has been intense in the Rs 18-25-lakh electric car segment, the sub-four-meter category, which is the backbone of the domestic car market driving more than 60% of the volumes in FY25, has been largely snubbed by major brands.
Hyundai and Mahindra fire the first shots with localised platforms
South Korean major Hyundai, for which India is one of the top four global markets, has taken the lead in developing a car suited for Indian conditions. Due for debut in the compact (A+) segment, the mini sports utility vehicle (SUV) from Hyundai is expected to be launched in 2027.
Speaking at the ‘CEO Investor Day’ in New York last week, Jose Munoz, president and CEO, Hyundai Motor Company, noted, “In India we are proud to have the country’s first EV designed specifically for Indian drivers with a localised supply chain.”
The push for locally engineered e-SUV will come after Hyundai’s disappointing performance on the volume front in the electric segment where it has had three launches so far — Kona, Ioniq 5 and Creta Electric. SUV heavyweight Mahindra & Mahindra (M&M) has planned a slew of products in the compact SUV space — the first of which will make it to the market in 2027. The Mumbai-based company has developed an all-new platform called Nu.IQ for this venture.
Tata and new players eyeing the crucial Sub-Rs 10 Lakh price point
Steel-to-ports conglomerate JSW Group is also keen to enter the small EV space. The company, which currently has only one model in the below Rs 10-lakh price bracket in partnership with China’s SAIC, has tied up with another Chinese automaker to bring in products under its own brand.
The share of MG Comet, a mini EV made by JSW MG Motor priced at Rs 7.5 lakh, is slightly over one-third in the company’s total sales.
For Tata Motors, the below Rs 10-lakh EV segment generated slightly over one-fourth of its total EV volumes during FY25. The Tata Tiago is its mainstay in this segment as only one variant of the Punch has been symbolically priced at `9.99 lakh.
Tata Motors, which is the biggest manufacturer of EVs in India, is believed to be working on more products for the sub-`10 lakh segment which are expected to drive its ambition of achieving 30% EV penetration by 2030.
Starting with an aggressive pricing of Rs 16.5 lakh for its debut model VF 6, Vietnam-based EV manufacturing newcomer VinFast has plans to get its entire line-up including the previously showcased VF 3 to India. The VF 3, a mini SUV, could be brought in below Rs 10 lakh.
“Currently, India’s EV market is relatively small, accounting for about 2.5% of all cars sold in 2024, with high prices and a limited charging network deterring potential buyers. However, we anticipate rapid expansion driven by more affordable EVs, an extensive charging infrastructure, and a shrinking price gap between traditional vehicles and EVs,” said a note from S&P Global.