Hyundai’s Upcoming Sub-4-Metre Electric SUV Spied Again; India Launch Expected Around Diwali 2026

Hyundai Motor India’s next major electric vehicle has been spotted testing once again, offering a closer look at the compact electric SUV that could become the company’s most affordable EV in India.

Internally referred to by the codename HE1i, the upcoming model is expected to measure under four metres and compete in the fast-growing mass-market electric SUV segment. Recent test-car sightings indicate that development has progressed significantly, with a market launch widely expected around the 2026 festive season or shortly thereafter.

Hyundai has officially confirmed that it plans to introduce a localised compact electric SUV as one of two new nameplates during FY2027. However, the company has not formally announced its name, launch date, price or production specifications.

Hyundai’s upcoming sub-4m electric SUV, reportedly codenamed HE1i, has been spotted testing ahead of its expected 2026 launch.

A Hyundai Punch EV Rival in the Making

The new electric SUV is expected to sit below the Creta Electric in Hyundai’s Indian portfolio. Its positioning could bring it into competition with models such as:

• Tata Punch EV

• Citroën e-C3 and e-C3X

• Lower variants of the Tata Nexon EV

• Upcoming compact EVs from Kia and other manufacturers

Rather than converting an existing petrol model into an EV, Hyundai is expected to use a dedicated electric architecture. Previous reports have linked the vehicle to the affordable E-GMP (K) platform used by the international Hyundai Inster.

Hyundai has described the upcoming model as an India-focused EV that will be designed, engineered and manufactured locally. Production is expected to take place at the company’s Sriperumbudur facility in Tamil Nadu.

Boxy Design With Inster-Inspired Proportions

Although the test vehicle remains heavily camouflaged, its basic proportions are clearly visible.

The upcoming Hyundai EV appears to have a tall and upright body, a flat roof and short overhangs. This design should help Hyundai maximise passenger and luggage space despite the vehicle’s compact exterior dimensions.

Visible design elements include:

• High-mounted LED daytime-running lamps

• Lower-positioned headlamp clusters

• An upright front section

• A likely closed-off EV grille

• Thick body cladding

• Roof rails

• A nearly horizontal window line

• A short rear overhang

• Large alloy wheels

The latest prototype was reportedly running on 17-inch wheels. Pixel-inspired lighting elements, already used across Hyundai’s newer electric range, could also appear on the production model.

While its silhouette resembles the global Hyundai Inster, the India-spec SUV may receive substantial changes in dimensions, styling, cabin packaging and equipment.

Two Battery Options Expected

Hyundai has indicated that the compact EV will be offered with standard-range and long-range battery options.

For reference, the international Hyundai Inster is available with:

Version	Battery	Motor output	WLTP range
Standard Range	42kWh	Around 97hp	Up to 300km
Long Range	49kWh	Around 115hp	Up to 355km

These figures should not be treated as confirmed specifications for India. Hyundai could recalibrate the battery, motor, charging system and certified range to suit local pricing, climate conditions and usage patterns.

A practical real-world range of approximately 250km to 350km, depending on the variant, would place the SUV in the heart of India’s urban EV market.

Reports also suggest that DC fast charging could be supported, although the final charging rate has not been officially disclosed.

Premium Features Could Be a Key Differentiator

Hyundai is likely to position the compact EV as a feature-rich offering rather than competing solely on price.

The production model could offer equipment such as:

• Dual digital displays

• Connected-car technology

• Over-the-air software updates

• Automatic climate control

• Wireless Android Auto and Apple CarPlay

• Ventilated front seats

• Electric sunroof

• 360-degree camera

• Vehicle-to-Load functionality

• Multiple regenerative-braking settings

Level 2 advanced driver-assistance technology has also been associated with the upcoming model. However, ADAS and several premium features may be limited to higher variants to keep the entry price competitive. Hyundai’s localised compact EV is expected to include OTA-capable infotainment and a Level 2 ADAS package in at least selected variants.

Localisation Will Be Critical

The success of the upcoming Hyundai EV will depend heavily on localisation.

Battery packs are among the most expensive components in an electric vehicle. Local sourcing of batteries, electrical components and vehicle parts could help Hyundai reduce manufacturing costs and protect the SUV from currency fluctuations.

Reports suggest that Hyundai intends to progressively raise localisation levels for the new EV. The company’s Tamil Nadu manufacturing base could also support exports to selected international markets in the future.

A high level of localisation would allow Hyundai to offer a more competitive price while leveraging its established dealership and service network—an important advantage over several newer EV brands.

Expected Price and Positioning

Hyundai has not announced pricing, but the compact EV could be positioned broadly between ₹11 lakh and ₹17 lakh, ex-showroom, depending on battery size and equipment.

The entry variants would need to remain close to the Tata Punch EV to attract urban buyers, while long-range and feature-loaded versions could overlap with the Nexon EV and lower variants of the Creta Electric.

An aggressive introductory price will be important because India’s electric passenger-vehicle market is becoming increasingly crowded.

Why This EV Matters for Hyundai

Hyundai currently sells the Ioniq 5 and Creta Electric in India, but both operate above the most price-sensitive part of the EV market.

The upcoming sub-four-metre SUV could therefore become Hyundai’s first genuine volume-oriented electric vehicle in the country.

It could help the manufacturer:

• Enter the affordable electric SUV segment

• Expand EV volumes beyond premium customers

• Utilise its nationwide sales and service network

• Challenge Tata Motors in the compact EV category

• Build scale through local production and exports

Hyundai has outlined a broader plan involving 26 product introductions in India by FY2030. The compact EV is expected to play a central role in that strategy.

Hyundai’s upcoming compact electric SUV could be one of the most consequential EV launches of 2026.

Its boxy design, dedicated electric platform, expected dual-battery strategy and extensive localisation suggest that Hyundai is targeting more than a niche product. The company appears to be preparing a practical urban EV capable of generating meaningful volumes.

However, the final outcome will depend on three factors: pricing, usable real-world range and cabin space. The compact EV has been confirmed for Hyundai’s FY2027 product programme, but the reported Diwali 2026 launch window is yet to receive formal confirmation. Similarly, battery capacities and features inferred from the global Inster should be considered indicative until Hyundai reveals the India-spec production model.