The two will undertake joint development of an electric three-wheeler that TVS can make locally under a contract manufacturing agreement, with Hyundai in charge of engineering and design.
30 Dec 2024 | 30384 Views | By Ketan Thakkar
To be more Indian in India, Hyundai Motor India Ltd (HMIL) plans to enter the fast-growing electric last-mile mobility space and accelerate the transition to zero-emission vehicles. Sources say Hyundai will likely partner with a local player to enter the three-wheeler and quadricycle space, and is in talks with TVS ...
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To be more Indian in India, Hyundai Motor India Ltd (HMIL) plans to enter the fast-growing electric last-mile mobility space and accelerate the transition to zero-emission vehicles. Sources say Hyundai will likely partner with a local player to enter the three-wheeler and quadricycle space, and is in talks with TVS Motor.
The talks centre around a potential partnership for the joint development of an electric three-wheeler that TVS can make locally under a contract manufacturing agreement. Hyundai will do the engineering and design.
The exact contours of the partnership are not yet known, but Hyundai's micro-mobility vehicle architecture is expected to be also shared with the South Indian automaker, much like how the Indian company has access to BMW’s architecture under its two-wheeler manufacturing tie-up with the German brand.
Hyundai has plans to showcase its last-mile mobility concept vehicles at the Bharat Mobility Show. Meanwhile, TVS Motor too has been eyeing the electric last-mile mobility space and has plans to launch its own electric three-wheeler in 2025.
Neither Hyundai Motor nor TVS Motor responded to an email seeking clarification on these developments.
Entering the last-mile mobility market may also provide a springboard for Hyundai’s introduction of its app-based platform, similar to Shucle, in the Indian market. In March 2021, Hyundai Motor Group launched Shucle, a demand-responsive ride-pooling service. Developed by Hyundai's AI research lab, Shucle began operations in Sejong City, South Korea as an integrated mobility platform that addresses local transportation challenges by offering flexible routing based on real-time demand.
The name "Shucle" combines "Shuttle" and "Circle," reflecting its role in providing circular shuttle services within specific areas. Through Shucle, Hyundai will look to participate in India's fastest-growing electric vehicle segment – three-wheelers.
Currently, Mahindra & Mahindra is the segment leader with over 40% share, and Bajaj Auto is rapidly expanding into the segment. Startups like AltiGreen and Euler have also been able to carve out a niche for themselves. Ola Electric and Hero MotoCorp are the other two major players in the last-mile mobility segment looking to make an impact.
Last Mile Electrification
Hyundai Motor Group’s Executive Chair, Euisun Chung, met with Indian Prime Minister Narendra Modi after the Indian subsidiary was listed on the National Exchange in October 2024.
An official statement from Hyundai Motor India had then said the two had engaged in wide-ranging discussions on the future of mobility. Executive Chair Chung underscored the Group’s priority of working closely with India, given the country’s diverse market conditions and reformist approach.
They discussed the development of the Indian mobility industry and potential cooperation between India and Hyundai Motor Group. The new initiative of last-mile mobility may have resulted from the recent discussion with the Prime Minister.
The electric three-wheeler segment continues to witness the fastest transition to EVs, with every second unit sold in India being a zero-emission model.
This segment, which comprises passenger-transporting rickshaws and cargo-delivering models, registered cumulative sales of 631,855 units, up 20%, in January-November.
While the 650,000 milestone is likely to have been achieved in the first fortnight of December, it remains to be seen just how close the segment gets to the 700,000-units mark.
The sustained growth in sales is a result of many factors, including lower cost of ownership (compared to IC engine, CNG, and LPG options), improved financing options, the FAME-EMPS and PM E-Drive incentive schemes, increased product choice, and growing demand from fleet and last-mile logistics operators.