The demand for strong hybrid cars in India is growing rapidly, despite limited offerings and government incentives promoting electric vehicles (EVs). In fact, the growth rate of hybrid cars is similar to that of EVs, with both segments increasing by around 18% year-on-year in FY25. Currently, there are only about five strong hybrid models available in the country, compared to 15 EV models. However, automakers are now lining up more hybrid models to meet the increasing customer demand, driven by high fuel prices and the need for fuel-efficient alternatives.
Several car manufacturers, including Maruti Suzuki, Hyundai Motor India, and Mahindra & Mahindra, are planning to launch more than half a dozen hybrid vehicles over the next two years. This shift reflects evolving market dynamics and growing consumer interest in hybrid technology. In fact, companies that previously dismissed hybrids are now actively evaluating or developing hybrid models for India.
The sales data for FY25 shows that hybrid vehicle sales rose to 105,000 units, while EV sales grew to 118,000 units. However, the growth rate of EV sales has moderated due to inadequate charging infrastructure. As a result, buyers looking to save on fuel costs are opting for strong hybrid vehicles. For instance, more than half of the sales of Toyota Innova Hycross and Urban Cruiser Hyryder now come from strong hybrid variants.
The upcoming implementation of CAFE 3 norms, which sets stricter fuel-efficiency rules, is also driving the growth of hybrid cars. Under CAFE, fuel consumption and emission targets apply to the overall fleet of a carmaker, including EVs and hybrids, rather than individual models. This gives manufacturers leeway to sell larger, less efficient vehicles as long as their cleaner models offset the impact on overall fleet emissions.
Several new hybrid models are expected to be launched in the next two years, including a hybrid SUV from Maruti Suzuki, Hyundai’s first strong hybrid model, and a plug-in hybrid vehicle from JSW MG Motor. Mahindra is also planning to launch a hybrid version of the XUV 3XO. The growth of hybrid cars is expected to continue, driven by consumer demand for fuel-efficient alternatives and the need for automakers to meet stricter emission norms. As Rahul Bharti, senior executive officer at Maruti Suzuki, noted, “It is heartening to note that both BEVs and strong hybrids are growing well. SHEVs also enhance energy efficiency and reduce CO2 significantly over pure petrol/diesel vehicles.”