Hyundai, TVS bet on electric three-wheelers to crack India’s last-mile market

Chennai:
Hyundai Motor Company has tied up with TVS Motor Company to develop and commercialise electric three-wheelers (E3Ws), marking the Korean carmaker’s most direct push yet into India’s vast last-mile mobility market.

The two companies on Monday signed a joint development agreement to co-create vehicles tailored for Indian conditions, with TVS expected to lead manufacturing and sales from its domestic base while Hyundai drives design and advanced engineering.

The move comes as India — the world’s largest three-wheeler market — emerges as a key battleground for electric mobility, particularly in passenger and cargo transport segments where operating costs and regulatory nudges are accelerating the shift away from fossil fuels.

Under the agreement, Hyundai will bring its global R&D capabilities and design expertise, while TVS will deploy its electric three-wheeler platform and local market understanding. The vehicles will be produced in India with a high degree of localisation, a strategy aimed at lowering costs, strengthening supply chains and ensuring faster service support.

The partnership builds on an earlier concept showcased at the Bharat Mobility Global Expo 2025 and signals a transition to commercial development and eventual mass production. The companies said the product would be engineered for India-specific challenges such as uneven road conditions, dense urban usage and tropical climates.

Features under consideration include higher ground clearance suited for monsoon-hit roads, enhanced thermal management systems and modular configurations that can be adapted for passenger transport, cargo movement and emergency services.

For Hyundai, the tie-up offers a route into a segment it has so far not directly addressed in India, where its presence has largely been in passenger vehicles. For TVS, it brings access to global design and engineering capabilities as it scales its electric mobility portfolio.

The companies did not disclose investment details or launch timelines but said dedicated teams have been set up to fast-track development, testing and regulatory approvals.