Hyundai Motor India has initiated development on a new SUV, expected to debut in 24 to 30 months from the company’s recently acquired Talegaon facility, formerly owned by General Motors. This upcoming model, internally referred to as Ni1i, will be positioned above the Alcazar in Hyundai’s lineup.
This SUV will mark Hyundai’s entry into the hybrid segment in India. The company plans to roll out its strong hybrid variant within two years, aiming to compete with Japanese manufacturers like Maruti Suzuki and Toyota Kirloskar, who have successfully captured market interest. As demand for petrol-hybrid SUVs rises in India, Hyundai intends to capitalize on this trend with its new offering.
What to Expect from the Hyundai Ni1i SUV?
While specific details are limited at this stage, insiders indicate that the new SUV will feature a spacious three-row configuration, targeting competitors such as the XUV700 and Tata Safari. It is anticipated to be slightly longer than the Tucson, which measures 4630mm in length. There are suggestions that it may be based on the longer Tucson LWB variant available in China, which is 4680mm long, providing ample cabin space for third-row passengers. For comparison, the XUV700 measures 4695mm and the Safari 4668mm, both offering better third-row space than the Alcazar.
As mentioned, this model will be Hyundai’s first foray into petrol-hybrid vehicles in India, though powertrain specifics have not yet been disclosed. Internationally, the Tucson features a 1.6-liter petrol hybrid system, shared with several other Hyundai and Kia models. To keep production costs manageable, Hyundai might integrate this hybrid technology with its existing 1.5-liter NA petrol engine.
Hyundai aims to manufacture around 50,000 units of this C-segment SUV each year, though the proportion of hybrid variants remains to be determined. By the end of the decade, the automaker will likely offer a diverse array of powertrain options in India, including petrol, diesel, CNG, ethanol, electric, and hybrid models.
Upon its release, this SUV will compete with Maruti Suzuki’s forthcoming C-segment SUV, codenamed Y17, produced at the automaker’s Kharkhoda facility, as well as the segment leader, Mahindra’s XUV700. This new model will be among the first to roll off the production line at the Talegaon plant, with initial units expected by 2027. Additionally, Hyundai plans to manufacture the next-generation Venue at the same facility, slated for release by next October.
The Rise of Strong Hybrid Vehicles in India
The hybrid vehicle segment has seen a surge, with sales reaching 89,000 units, representing 2.1% of the 4.23 million units in the Indian passenger vehicle market. This figure is only slightly lower than the 99,000 battery electric vehicles sold in FY24.
Japanese manufacturers like Suzuki and Toyota have embraced the hybrid trend, while Hyundai’s sister brand, Kia India, is also expected to introduce a strong hybrid model, though details remain unclear. Meanwhile, domestic competitors Tata Motors and Mahindra & Mahindra are focusing primarily on battery electric vehicles. However, Mahindra has indicated that they may explore hybrid options in response to growing consumer demand.
Several companies are working on various hybrid powertrain technologies, with JSW MG Motor India and BYD India considering plug-in hybrids. Market leader Maruti Suzuki plans to roll out a series hybrid, an economical option in the compact car segment, in the coming years. The company forecasts sales of around 750,000 hybrid vehicles by FY31, which would account for nearly a quarter of its total sales, while projecting a lower share of EVs at 15%.
