Hyundai answers Modi, enters India three-wheeler EV market

Apr 22, 2026, 08:02 am

Hyundai Motor has begun full-scale entry into India’s electric three-wheeler market, marking a strategic move beyond simple business expansion to target the fast-growing micro-mobility sector. The market, currently valued at about 2 trillion won, is expected to triple to around 6 trillion won by 2034.

The initiative also fulfills a request made eight years ago by Indian Prime Minister Narendra Modi, to which Hyundai Motor Group Executive Chair Euisun Chung has now responded.

Eight-Year Promise Turns Into Reality

According to Hyundai Motor on April 21, the company signed a joint development agreement with TVS Motor Company at Bharat Mandapam Convention Center in Delhi to develop and commercialize electric three-wheelers.

The collaboration traces back to the 2018 Korea-India Business Forum, where Modi emphasized the need for eco-friendly transportation solutions to improve India’s challenging traffic conditions. Chung agreed and initiated the development of India-specific mobility solutions.

The two leaders met again in 2024 to discuss vehicle design direction and business vision, reaffirming their commitment to the project.

Hyundai unveiled three-wheeler and micro four-wheeler EV concepts at the Bharat Mobility Global Expo 2025, officially announcing its partnership with TVS. The latest agreement marks the transition to mass production.

Division of Roles Targets Local Market

Under the partnership, Hyundai will lead vehicle design and engineering, while TVS will handle production, sales, and after-sales services.

The companies plan to localize key components, aligning with India’s road conditions and consumer needs. This approach is expected to strengthen cost competitiveness, boost the local auto parts ecosystem, and create jobs.

Ko Jung-sun, Executive Vice President of Hyundai’s corporate strategy division, said,

“We expect the jointly developed E3W to become a safer and more sustainable mobility solution for people in India.”

Hyundai Motor Group has steadily expanded local production, operating plants in Chennai, Pune, and Kia’s Anantapur facility. These plants are expected to reach a combined annual capacity of 1.5 million units by the end of this year.

Chung previously stated, “Since entering India in 1996, Hyundai has contributed to the development of the automotive industry and job creation,” adding, “We aim to become a trusted partner in India’s ‘Make in India’ policy and ‘Viksit Bharat 2047’ vision.”

Rapid Growth Drives Market Entry

Hyundai’s move is driven by strong growth potential. Rising fuel costs, increased demand for last-mile delivery, and urban congestion are fueling demand for electric three-wheelers.

The Indian government is also supporting EV adoption through subsidies, tax reductions, and direct incentives in some states.

According to Research and Markets, India’s electric three-wheeler market is projected to grow from $1.16 billion in 2024 to $4.08 billion by 2034, with a compound annual growth rate of 13.4%.

Currently led by Mahindra and Bajaj, the market is expected to reach around 900,000 units in annual sales by next year, with players like TVS and YC Electric rapidly gaining ground.

#Hyundai Motor #Euisun Chung #Narendra Modi #India EV market