Hyundai Outlines Plans for Made-in-India Ioniq P Compact Electric SUV Debut
Automaker Hyundai Motor Company is preparing to introduce an entry-level compact electric sport utility vehicle in India, widely expected to adopt the Ioniq P nameplate, according to automotive reporting following Hyundai's third-quarter business update on October 29, 2026. The upcoming vehicle, developed under the internal project designation HE1i, will extend Hyundai's dedicated global electric brand into a more accessible volume segment of the domestic passenger car market. Tarun Garg, Managing Director and Chief Executive Officer of Hyundai Motor India, stated that the brand is preparing for the introduction of its dedicated mass-market electric vehicle in the fourth quarter of fiscal year 2027, with an official public debut anticipated in January 2027 following the Bayon.
Project HE1i and Brand Nomenclature
The product introduction forms the centerpiece of Hyundai's strategy to expand its electric vehicle market penetration closer to industry benchmarks by fiscal year 2028. Domestic electric passenger vehicle registrations across India expanded by nearly 90 percent during the initial phase of fiscal year 2027, increasing interest in competitively priced compact electric vehicles positioned below the Creta Electric. India represented Hyundai's fastest-growing geographic territory during the third quarter, with regional sales advancing 9.5 percent to exceed 150,000 units, even as total global automotive deliveries declined 10 percent year-on-year to 931,211 vehicles.
Domestic EV Market Growth and Volume Goals
Automotive reports suggest the planned compact EV could use Hyundai's E-GMP K architecture, which also underpins the internationally marketed Inster EV. The model is anticipated to offer standard-range and long-range battery options, providing operational configurations comparable to the Inster's 42 kilowatt-hour and 49 kilowatt-hour battery configurations that deliver driving ranges reaching up to 355 kilometers under worldwide harmonized test cycles. Initial production batches will rely upon imported battery cells because local cell manufacturing through domestic partner Exide Industries will not commence this year. Localized cell procurement is scheduled for subsequent manufacturing phases to lower assembly expenditures as production volumes expand.
Exide Industries' lithium-ion cell manufacturing gigafactory in Bengaluru, developed under subsidiary Exide Energy Solutions, has an initial phase capacity of 6 GWh with planned ramp-up to 12 GWh, according to Autocar Professional.
Exide Industries MD Avik Roy stated that the localisation project with Hyundai and Kia will not come this calendar year or fiscal year.
The battery cell localisation initiative for Hyundai is structured as a co-investment involving a dedicated customised production line, potentially half a line, at Exide's gigafactory rather than using Exide's initial production lines, according to Autocar Professional.
Architecture and Battery Sourcing Strategy
The compact electric vehicle will be assembled at Hyundai's manufacturing facility located in Sriperumbudur near Chennai, Tamil Nadu, as part of a broader 15.5 billion dollar investment program extending through 2032 to expand domestic factory capacity to 1.1 million vehicles by 2030. Reports also anticipate Pleos Connect infotainment and Level 2 driver assistance, although final equipment specifications have not been announced. Upon release, the electric SUV will compete directly against domestic rivals including the Tata Nexon EV and other compact electric SUVs, including the Mahindra XUV 3XO EV and Kia Syros EV, with company management identifying Indian production lines as an essential export hub for shipments to international overseas territories.