Hyundai Motor plans to produce electric rickshaws, a staple of India’s transportation network, as part of its strategy to expand in the South Asian market. While electric vehicles account for just 2% of India’s total passenger car sales—much lower than China’s 28%—the country’s EV market is dominated by two- and three-wheelers. In 2024, 59% of the 1.95 million EVs sold in India were two-wheelers, and 35% were three-wheelers. Hyundai’s focus on rickshaws reflects its tailored approach to local needs while boosting its brand presence.
The automaker has also launched small SUVs designed for India’s road conditions. Earlier this month, Hyundai debuted the Creta EV, its first locally produced electric SUV since starting operations at its Chennai plant in 1998.
Hyundai’s push into India comes as it faces challenges in other global markets. With sales declining in Europe and China, India’s importance has grown. Hyundai’s global sales fell by approximately 1.8% in 2024, marking the first decline since 2020. However, sales in India increased by 0.6% over the same period, cushioning the global downturn.
Adding to the uncertainty, the second Trump administration is preparing to implement higher tariffs, intensifying risks in Hyundai’s largest overseas market, the United States.
On Jan. 18, at the Bharat Mobility Global Expo 2025 in Delhi, Hyundai officially announced plans to explore mass production of electric rickshaws in India. The company also revealed a partnership with TVS Motor Co., under which Hyundai will handle vehicle design and development while TVS oversees local production and sales.
At the event, Hyundai unveiled an electric three-wheeler concept tailored to India’s road and weather conditions. The vehicle features adjustable ground clearance for monsoon resilience and versatile modifications for logistics, passenger transport, and emergency services. It also includes foldable seats for wheelchair accessibility and towing capabilities.
In 2024, India’s electric three-wheeler sales grew 18% year-over-year, reaching approximately 690,000 units. Meanwhile, traditional diesel-powered rickshaws are being rapidly phased out under government policies promoting cleaner energy. Diesel three-wheelers were banned from metropolitan area registrations in 2023, with a full ban on their operation set for 2027.
Hyundai plans to launch five EV models in India by 2030, including the Creta EV. Since its introduction in 2015, the Creta has been a cornerstone of Hyundai’s success in India, accounting for one-third of the company’s 459,000 vehicle sales in the country during the first nine months of 2024.
Hyundai’s affiliate Kia is also strengthening its presence in India. On Jan. 16, Kia began mass production of the Syros, an SUV tailored to the Indian market. With over 10,000 pre-orders, the Syros will officially launch on Feb. 1. Kia plans to sell the model not only in India but also across Asia-Pacific, Latin America, and the Middle East.
