Hyundai is developing a new hybrid SUV to sit above the Alcázar Palace

Hyundai’s upcoming SUV, codenamed Ni1i, will be equipped with a 1.5-liter gasoline hybrid engine

Hyundai Motor India is preparing to launch a new SUV, which will be positioned higher than the Alcazar but lower than the Tucson. The SUV, codenamed “Ni1i”, is expected to hit the Indian market in the next 24 to 30 months. Production will take place at GM’s plant in Talegaon near Pune, which Hyundai recently acquired.

Hyundai launches first petrol hybrid in India

One of the main highlights of this new SUV is its gasoline hybrid powertrain. This marks the launch of Hyundai’s first hybrid model in India, meeting the growing demand for hybrid vehicles in the Indian market. Japanese rivals including Maruti Suzuki and Toyota have found success with hybrid products, prompting Hyundai to join the trend. The hybrid SUV market in India is growing steadily, with strong demand for fuel-efficient alternatives amidst rising fuel prices and environmental concerns.

Competitors and market positioning

The Ni1i SUV will directly compete with popular three-row models like the Mahindra XUV700 and Tata Safari, both of which offer ample third-row space. While details about the powertrain remain under wraps, industry insiders say it will likely use a hybrid setup similar to the 1.6-liter gasoline engine used in the Tucson International. It can be paired with Hyundai’s existing 1.5-litre petrol engine to keep prices competitive.

In terms of size, the new SUV is expected to be longer than the Tucson, which measures 4630 mm. It is likely to be based on the long-wheelbase version of the Tucson sold in China, with a length of 4680 mm. This will give the SUV a more spacious interior, especially in the third row, a key requirement for Indian buyers looking for a family car.

Production and future plans

Hyundai plans to produce about 50,000 units of the C-segment SUV annually, but the exact share of hybrid models remains unclear. As automakers expand their powertrain offerings, Hyundai could offer a diverse lineup by the end of the decade, including gasoline, diesel, CNG, ethanol, electric and hybrid models.

Hybrid vehicle industry trends

Hyundai’s hybrid plans are in line with a broader industry shift toward more fuel-efficient vehicles. In FY24, hybrid vehicle sales in India reached 89,000 units, accounting for 2.1% of the total passenger car market. This number is close to electric vehicle sales (approximately 99,000 units).

Japanese automakers such as Suzuki and Toyota have led the development of hybrid vehicles in India, while local companies such as Tata Motors and Mahindra have focused on electric vehicles. However, Mahindra said it may reconsider its strategy if demand for hybrids continues to rise. Hyundai’s sister brand Kia is also expected to launch a powerful hybrid model in India soon.

With Hyundai about to launch the Ni1i SUV, the carmaker is not only expanding its SUV lineup but also entering the Indian hybrid market. As hybrid and electric vehicles continue to gain traction, the new model will play a vital role in Hyundai’s strategy to remain competitive in the rapidly evolving automotive sector. The Ni1i will not only challenge existing players such as the Mahindra XUV700 and Tata Safari, but will also provide consumers with more options in the growing hybrid SUV segment.

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