Hyundai Inster EV will compete with Punch EV and eC3 at the end of 2026

Faced with stiff competition from Tata Motors in the mainstream car market, Hyundai Motor India plans to challenge the domestic automaker in the mass electric vehicle segment in the next 12-24 months. Our sister publication Autocar Professional has learned that Hyundai India has received approval from its Korean parent to challenge the Tata Punch after it entered the electric SUV market with the Creta EV in the first quarter of 2025.

The compact SUV, called the HE1i, will be launched in the second half of 2026. It will be the model of the Inster EV that the company presented at the Busan Motor Show in South Korea. Hyundai Motor Company India is adopting the EV architecture in Ice (through the Creta EV) and the electric platform born on the E-GMP(K) Global Charging and Platform (for the HE1i EV). The prototype will be manufactured at the company’s plant in Sriperumbudur using Exide’s original manufacturing batteries.

Inster is based on Casper, which is sold in many markets around the world. The new compact SUV is 230mm longer than the Casper, with 180mm added to the wheelbase to accommodate the economical battery. The Inster is 3,825mm long, which is shorter than the Tata Punch EV (3,857mm) and the Citroen eC3 (3,981mm). Two engine options have been announced for the global market: 97 hp and 115 hp, both with 147 Nm of torque.

Two NMC battery packs are available (42kWh standard and 49kWh long-range), with WLTP claims of 300km and 355km. The India-spec HE1i is likely to have two battery backup options when it launches. Among the new features, the Inster is well-equipped with features such as dual 10.25-inch screens for the instrument cluster and touchscreen, ADAS, automatic climate control and a 360-degree tracking camera.

Between the Creta EV (26,000 units) and the compact electric SUV (65,000 units), Hyundai Motor India expects to produce around 90,000 units annually. However, there is also a large segment intended for export, especially when we talk about compact SUVs. The company has invested 20 billion rupees to manufacture electric vehicles in the Indian market over the next eight years. Hyundai Motor Company said at its Red Carpet Production (DRHP) announcement that it plans to adjust its electric vehicle strategy and schedule to meet the needs of domestic markets by launching models DRHP said Hyundai India will launch four new electric vehicles including models mass market.
The popular Creta EV will be launched later in this budget. “We are implementing a transformative strategy that begins with the launch of premium electric vehicles. We are planning to transition to the mass market based on increasing sales in the Indian EV market and ecosystem. Therefore, we aim to launch four electric vehicle models, including the Creta EV, in the fourth quarter of 2025. While the Creta EV and the compact EV have been confirmed, considering the EV version of the Venue compact SUV and the Grand EV based on i10 Nios.

The Korean automaker was the first to introduce an electric vehicle in India when it launched the Kona Electric in 2019, followed by the IONIQ 5. However, since these were imported, the company had to take on more debt. Hyundai India believes that the Korean parent company’s diverse xEV portfolio, which includes battery electric vehicles, hybrid electric vehicles, plug-in hybrid electric vehicles, mild hybrid electric vehicles and fuel cell electric vehicles, will be a “key use” for the electric vehicle strategy of India. “We believe our experience in developing locally dedicated ICE models will help us develop local xEV models for the Indian market,” DRHP notes. Tata Motors sells around 75,000 electric vehicles a year with a portfolio of four vehicles (Tiago, Tigor, Punch and Nexon). The company plans to further strengthen its offerings with the launch of the new Curvv, Harrier EV and Sierra EV in the next 12-24 months.

Despite the launch of the Punch EV earlier this year, Tata Motors’ monthly sales have declined. As Hyundai faces new competition from Tata Motors, the latter is keen on new players entering the market as it will help expand the fledgling EV market in India. Tata Motors, the electric vehicle leader with over 75% market share, is closing in on Hyundai Motor India for second place with only 30,000 units coming out of both companies. As the shift towards electric vehicles continues, new competition in the electric vehicle space between Hyundai Motors and Tata Motors is the odd reason for them to claim second place in the Indian luxury car market..