Hyundai India is reportedly in talks with TVS Motor to jointly develop an electric three-wheeler, signaling the company’s entry into India’s fast-growing last-mile mobility market. This collaboration aims to address the demand for zero-emission vehicles while providing efficient transport solutions in urban and semi-urban areas.
According to a report from Autocar Professional, Hyundai would oversee the design and engineering of the vehicle, while TVS Motor would handle its manufacturing locally under a contract manufacturing agreement.
The partnership between Hyundai and TVS will focus on developing a new electric three-wheeler specifically for India’s last-mile mobility market. TVS is expected to manufacture the vehicle locally, benefiting from cost-effective production in India. Hyundai, with its expertise in vehicle design and engineering, would provide the necessary architecture and technology for the electric vehicle.
The companies are reportedly exploring the possibility of Hyundai’s micro-mobility vehicle architecture being shared with TVS. This is similar to TVS’s arrangement with BMW, where the Indian manufacturer utilizes BMW’s architecture for some of its models.
Hyundai’s potential entry into the last-mile mobility space would complement the company’s ongoing efforts to promote zero-emission vehicles in India. The automaker is already active in the Indian electric vehicle market with models like the Creta EV, and its collaboration with TVS will enable Hyundai to extend its reach into the rapidly expanding electric three-wheeler segment.
This collaboration would allow Hyundai to tap into the local demand for environmentally friendly transport solutions while expanding its presence in India's electric vehicle market.
TVS Motor, a key player in the Indian two-wheeler and three-wheeler market, is also eyeing the growing electric vehicle market. The company plans to launch its own electric three-wheeler in 2025, aligning with the industry’s broader push towards sustainability and zero-emission solutions.
By collaborating with Hyundai, TVS can leverage the expertise of a global automaker in vehicle design and engineering, helping the company fast-track its electric vehicle development.
As part of its entry into the last-mile mobility market, Hyundai is expected to introduce its app-based platform, Shucle, in India. Shucle, a demand-responsive ride-pooling service, was launched by Hyundai Motor Group in 2021 in South Korea.
It utilizes AI technology to provide flexible routing based on real-time demand, addressing local transportation challenges. The platform’s introduction in India is expected to complement the electric three-wheeler collaboration with TVS, offering customers a seamless, eco-friendly transport solution.
The collaboration between Hyundai and TVS could have a significant impact on India’s electric vehicle market, especially in the three-wheeler segment. Currently dominated by Mahindra, the market is seeing growing competition from companies like Bajaj Auto, Ola Electric, and Hero MotoCorp, all of which are eyeing the potential of electric three-wheelers.
By entering this market, Hyundai and TVS are positioning themselves as strong contenders in the race for last-mile mobility solutions, especially as the demand for environmentally friendly transportation options continues to rise.
Conclusion
The collaboration between Hyundai and TVS Motor is poised to make a substantial impact on India’s electric vehicle market, particularly in the last-mile mobility and electric three-wheeler segments. With Hyundai’s expertise in vehicle design and TVS’s manufacturing capabilities, this partnership could help meet the growing demand for sustainable transportation solutions in India. The addition of Hyundai’s Shucle platform and TVS’s own electric three-wheeler in 2025 further strengthens this collaboration’s potential to reshape urban mobility in India.