Hyundai SUV launches FY27: new EV, ICE to regain No.2

Why Hyundai is changing its playbook for FY27

Hyundai Motor India is preparing a two-model SUV push in FY27 to recover lost ground in the domestic passenger vehicle market. The company is targeting high-volume segments with two brand-new nameplates: a localised, dedicated compact electric SUV and a new mid-size internal combustion engine (ICE) SUV. The move comes after Hyundai’s domestic sales fell 2.29% year-on-year in FY26, a period when competition in SUVs and EVs intensified.

In FY26, both Mahindra and Tata Motors moved ahead of Hyundai in annual domestic passenger vehicle sales, pushing the Korean carmaker to fourth place. Hyundai’s management has positioned the next financial year as a reset built around new products and participation in “high-demand segments” where the bulk of incremental volumes are being created.

FY26 numbers: sales slip and ranking impact

Hyundai Motor India reported domestic sales of 584,906 units in FY26, down 2.29%. In the same year, Mahindra and Tata recorded 660,276 units and 651,261 units respectively, overtaking Hyundai. This ranking change is the immediate backdrop to Hyundai’s FY27 product strategy.

The company’s approach is notable because it is not just planning a refresh or a derivative product. It is anchoring FY27 recovery on “two brand-new SUV nameplates”, indicating an intent to address gaps with products designed for segments showing sustained demand.

CEO confirmation: both models aimed at high-demand SUV segments

Tarun Garg, Managing Director and CEO of Hyundai Motor India, confirmed during the company’s Q4 FY26 earnings call that both upcoming models will be in high-demand segments. He identified two focus areas: the compact SUV space and the mid-size SUV space.

For Hyundai, this matters because the compact end of SUVs has become a key battleground in India’s transition to electrification, while mid-size SUVs continue to drive a significant share of mass-market volumes. Garg’s comments also signal that Hyundai is aligning product planning tightly with where competitors have gained scale.

Compact EV: a dedicated, localised EV rather than an ICE conversion

The compact electric SUV is being described by Hyundai as a “new localised dedicated-EV in the compact-SUV space.” The phrasing is important because it distinguishes the new model from EVs developed as adaptations of existing ICE platforms. One report contrasts it with the Hyundai Creta Electric, noting that Creta Electric is based on an ICE model, while the upcoming compact EV will be built from scratch as an EV.

Hyundai’s compact EV has also been described as “made-for-India” and “fully localised,” with the company stating it will be designed, engineered, and developed in India. Production is expected at Hyundai’s Sriperumbudur plant in Tamil Nadu.

What the compact EV could be: Inster likely, HE1i codename mentioned

Industry reports point to the Hyundai Inster EV as a likely candidate for the compact EV programme. The Inster is a sub-compact electric SUV that has already been launched in international markets. Multiple references also mention the codename “HE1i” for the India-focused compact EV.

The India-first nature of the programme has been underlined by references that sightings have been limited to Indian roads so far. Test mules have reportedly been spotted charging next to the Tata Nexon EV, reinforcing the view that Hyundai is benchmarking against established mass-market EVs.

Target positioning: Punch EV and Nexon EV in Hyundai’s crosshairs

The upcoming compact EV is repeatedly positioned as a direct rival to the Tata Punch EV, described as one of India’s best-selling electric vehicles. Reports also mention Hyundai targeting the Tata Nexon EV and Mahindra’s compact EV offerings, including references to the Mahindra XUV 3XO and XUV 3XO EV.

From a segment standpoint, Hyundai’s compact EV is expected to sit in the small SUV space and is described as likely to be under 4 metres in length. Hyundai has also indicated it plans to introduce several new EVs in India by 2030, with this model forming part of that broader roadmap.

Range, battery, features, and pricing signals from reports

Expectations on range vary across reports. Some point to around 300-400 km of range, while other mentions indicate up to 500 km range expected. A 40 kWh battery pack is also cited in reports. Hyundai has not been shown providing a detailed specification sheet in the provided information, but multiple sources converge on the model being built to be competitive on running range and pricing.

On features, the model is expected to offer connected technology, and level 2 advanced driver assistance systems (ADAS) is mentioned. Another detail that appears in the provided information is the battery sourcing, with one report stating batteries could be sourced from India’s Exide.

On pricing, Hyundai has outlined a plan to launch a new EV in the Rs 10 lakh (ex-showroom) price range. Separate reports cite an expected price band of roughly Rs 10 lakh to Rs 15 lakh (ex-showroom), and another reference mentions Rs 9,80,000 to Rs 15 lakh.

Mid-size ICE SUV: new nameplate, but model speculation is still fluid

Alongside the compact EV, Hyundai plans a new mid-size ICE SUV as its second key FY27 launch. While Hyundai has confirmed the segment focus, it has not officially disclosed the nameplate in the provided information.

Reports suggest this ICE SUV could be the Bayon, described as an i20-based crossover. If that speculation is accurate, it would compete with models such as the Maruti Suzuki Fronx and other sub-4-metre crossover-SUVs. This also highlights that while Hyundai’s leadership framed the opportunity as “mid-size SUV space,” the market chatter is leaning toward a crossover-SUV that competes in a tightly contested compact crossover band.

Timeline: FY26-27 launch window, with 2027 repeatedly referenced

Across the provided information, the compact EV’s timeline is consistently tied to FY2026-27, with mentions of early 2027 and “by 2027.” Other references also point to late 2026 or 2027 as the expected window.

This places the compact EV within Hyundai’s near-term plan rather than a distant concept, and aligns with mentions that it is already being tested on Indian roads.

Key facts at a glance

Market impact: why these two launches matter for Hyundai

Hyundai’s FY26 numbers show it lost relative momentum against two Indian OEMs that have built scale in SUVs and, in Tata’s case, in electric vehicles. The FY27 plan directly addresses those pressure points by combining a mass-market compact EV with a new ICE SUV in an SUV-heavy market.

A dedicated, localised EV can matter on cost and pricing flexibility, especially when Hyundai is explicitly aiming for the mass-market price band around Rs 10 lakh (ex-showroom). The repeated references to localisation, India-first engineering, and domestic production indicate Hyundai is trying to align the product with local expectations on ownership economics and features.

Analysis: localisation and segment choice are doing the heavy lifting

The most important strategic signal is Hyundai’s emphasis on a “localised dedicated-EV” rather than an ICE-based conversion. In India’s compact EV space, products are frequently compared on range, charging convenience, and upfront price. Hyundai’s reported focus on competitive range bands and mass-market pricing aims to meet those benchmarks head-on.

On the ICE side, Hyundai’s choice to add a new SUV nameplate, rather than relying only on existing models, shows it is treating the SUV space as the core volume engine. The segment references also suggest Hyundai is trying to cover both ends of the high-volume SUV funnel: compact SUVs that can support electrification, and ICE SUVs where demand remains broad.

What to watch next

Hyundai has confirmed the segment focus and the two-launch roadmap for FY27, but key details like final model names, variants, and final specifications remain unannounced in the provided information. The compact EV’s testing activity and repeated 2027 references suggest a product and engineering programme that is moving toward launch readiness.

The next concrete milestones to watch will be Hyundai’s official model reveals, finalised technical specs such as certified range and battery options, and clearer communication on how the compact EV will be priced against the Tata Punch EV and Tata Nexon EV.