Hyundai Motor Company and TVS Motor Co. Ltd are preparing to expand their electric mobility partnership beyond three-wheelers by developing an electric mini truck to rival Tata Motors Ltd’s Ace, according to two executives familiar with the plan.
The companies are targeting a 2027 rollout for the mini truck, the executives said, following the formalization of their electric three-wheeler partnership in April 2026, the first step towards commercializing their jointly developed vehicles.
The plan comes as the companies test their jointly developed electric three-wheeler in Gurugram through Blue Move, a ride-hailing app being piloted with consumers and Hyundai India employees.
Expansion vehicle
An entry into the segment will help TVS expand its auto ambitions beyond two- and three-wheelers, while the partnership will allow Hyundai to move beyond passenger vehicles in the country. Mahindra and Mahindra Ltd, Tata and have a presence in the small four-wheeler commercial vehicle segment.
“The plan to roll out an electric four-wheeler to enter the small truck-loader space is built on the four-wheeler concept unveiled at the Bharat Mobility Global Expo,” said one of the persons cited above.
Hyundai and TVS unveiled electric three-wheeler and micro four-wheeler concepts at the January 2025 expo. The four-wheeler concept was designed for last-mile mobility, but Hyundai had said its development was under review as it assessed the vehicle’s global potential.
In April 2026, the companies signed a joint development agreement to develop and commercialize the electric three-wheeler.
Under the arrangement, South Korean Hyundai will lead the design and leverage its research and development expertise, while Hosur-based TVS will co-develop the vehicle using its electric platform and three-wheeler engineering capabilities. TVS will also lead local sales, with manufacturing operations in India to cater to domestic demand and future exports.
Mint‘s queries emailed to Hyundai and TVS remained unanswered.
Sought-after segment
The proposed four-wheeler would mark a further expansion of the partnership into a segment where TVS does not currently offer an electric mini truck. Hyundai already sells the Porter II Electric, a small electric cargo truck, in South Korea. The vehicle is designed for urban deliveries and has a claimed range of 217 kilometres on a single charge.
The proposed vehicle would enter a market where , Mahindra Last Mile Mobility, Euler Motors, and other manufacturers are expanding their electric goods-carrier offerings.
Retail registrations of electric trucks and light commercial vehicles rose to 14,869 in fiscal year 2025-26 (FY26) from 5,537 in FY25, showed Vahan data. Registrations reached 16,995 in April-September FY27, already exceeding the previous fiscal year’s total.
The growth comes from a small base, but competition is intensifying as companies seek to electrify last-mile deliveries. Tata Motors and Euler Motors were the two largest players in September, with 1,267 and 1,068 electric goods-vehicle registrations, respectively. Mahindra Last Mile Mobility followed with 464 registrations.
The growth opportunity is being driven by the expansion of e-commerce, parcel deliveries, and urban logistics, in which small commercial vehicles make frequent trips. can also offer fleet operators lower running costs, particularly on high-utilization routes where savings on fuel and maintenance can offset the higher upfront cost of an electric vehicle.
“For high-utilization applications such as fleet logistics, parcel delivery, and intra-city transportation, these operational savings are a major incentive,” Knowledge Sourcing Intelligence said in its March 2026 report on India’s electric commercial vehicle market.
The report projected the market to grow at a compound annual growth rate of 28.1%, reaching $3.1 billion by 2031 from $0.9 billion in 2026.
The government is also working on fuel efficiency standards for commercial vehicles, which could encourage electrification in the segment. The Bureau of Energy Efficiency has released draft standards for light and medium commercial vehicles weighing 3.5-12 tonnes, along with rules for heavier trucks, but has yet to notify the public.