Hyundai Motor India Ltd is reportedly planning to enter the growing electric last-mile mobility segment and may enter into a partnership with TVS Motor to jointly develop electric three-wheelers. This move is in line with Hyundai’s efforts to adapt to the needs of the Indian market and accelerate the transition to zero-emission vehicles.
Hyundai Motor’s strategic initiatives
Hyundai aims to leverage its expertise in engineering and design while partnering with TVS for local manufacturing under a contractual agreement. The partnership will mark Hyundai’s entry into a segment that is growing significantly, driven by growing demand for sustainable mobility solutions.
Hyundai is also expected to share its micro mobility vehicle architecture with TVS, a model similar to the South Indian carmaker’s arrangement with BMW for two-wheeler manufacturing. The move highlights a growing trend of global and local carmakers joining forces to tap into niche mobility segments.
Expanding last-mile mobility services
Hyundai’s plans are expected to come to fruition at the upcoming Bharat Mobility Expo, where the carmaker is likely to showcase its last-mile mobility concept car. Entering this market could also pave the way for Hyundai to launch an app-based ride-sharing platform in India, similar to its Shucle service in South Korea. Launching in 2021, Shucle is a demand-responsive ridesharing service designed to solve local transportation challenges with real-time, flexible routing.
Competition and Market Dynamics
The Indian electric three-wheeler market is highly competitive, with established companies such as Mahindra & Mahindra occupying more than 40% of the market share. Startups like Bajaj Auto and AltiGreen and Euler Motors have also carved out sizable niches. Ola Electric and Hero MotoCorp are the other major players looking to make an impact in the last-mile mobility space.
The industry is growing rapidly, with sales reaching 6,31,855 vehicles from January to November 2024, a year-on-year increase of 20%. Lower cost of ownership, improved financing options and government incentives such as FAME-EMPS and PM E-Drive schemes are driving the transition to electric three-wheelers. Fleet operators and last-mile logistics companies are also driving demand.
Government Cooperation and Vision
Hyundai’s recent discussions with the Indian government may influence its decision to expand into last-mile mobility. Executive Chairman Euisun Chung met with Prime Minister Narendra Modi in October 2024, focusing on the development of the Indian mobile industry and potential avenues for cooperation. Hyundai Motor’s commitment to India’s diverse and reformist market conditions reflects its long-term vision for sustainable mobility in the region.
The role and plan of TVS motor
TVS Motor has been focusing on the last-mile electric mobility sector and plans to launch its own electric three-wheeler in 2025. The partnership with Hyundai will allow TVS to benefit from Hyundai’s engineering and design expertise while contributing its manufacturing capabilities.
The Prospect of Electric Tricycles
The electric three-wheeler segment is expected to grow further, with sales expected to reach 700,000 units by the end of 2024. The segment, which includes passenger rickshaws and cargo models, continues to evolve to meet growing consumer demand as manufacturers introduce more advanced and affordable products.
While neither Hyundai nor TVS has commented on the reported development, the tie-up between the two companies could have a significant impact on the trajectory of the Indian EV market, especially in the fast-growing last-mile mobility segment. The collaboration could also signal a broader trend of global and local partnerships to shape the future of sustainable transportation in India.
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