TVS-Hyundai bet on AC electric autos with new ride-hailing service
What's the story
TVS Motor Company and Hyundai Motor Company have expanded their partnership from vehicle development to mobility services. The two companies are now piloting a ride-hailing app using electric three-wheelers they developed together. The test is being conducted in Gurugram through 'Blue Move,' a new ride-hailing platform currently being tested with consumers and Hyundai India employees within an 8-10km radius of Hyundai India's headquarters.
Strategic partnership
Expanding into new mobility services
This initiative is a continuation of the MoU signed by TVS and Hyundai in April. It is a rare case of two automakers collaborating not just on product development but also on testing a ride-hailing platform. The potential launch of such a business would expand revenue opportunities for both companies, which have been looking to grow their presence across the mobility ecosystem.
Project goals
Free rides offered to assess vehicle performance and platform viability
The pilot project is aimed at understanding the challenges of running a ride-hailing service with the jointly developed vehicles. It is currently free of cost and provides insights into both product performance and the ride-hailing platform. Hyundai has developed and manages the app, while TVS manufactures the vehicles. The electric three-wheelers offer features like air-conditioning and infotainment systems inside an auto-rickshaw.
Market influence
Hyundai's experience from operating Shucle in South Korea
Hyundai is leveraging its experience from running a ride-hailing business in South Korea through Shucle, which operates shuttle services on specific routes. The app was developed by Hyundai with the aim of exploring an affordable electric mobility option for consumers within specific routes and assessing its commercial viability. This strategic move highlights the global collaboration between automakers to innovate and expand into new markets.
Production details
TVS will manufacture and export the co-developed vehicles
As part of the partnership, TVS will manufacture and export the co-developed vehicles. These products are built on TVS' technology platform and resemble its flagship three-wheeler models. The companies said in a joint statement that this agreement formalizes the transition from concept exploration to concrete product development and mass production. The vehicle will undergo rigorous testing, localization refinement, and certification processes to meet Indian regulatory standards.
Market potential
EVs in India and electric 3-wheeler market
The pilot project comes as the Delhi-NCR region looks to tackle pollution by promoting electric vehicle adoption. The three-wheeler segment has emerged as the most electrified category in India's automotive market, with electric three-wheeler sales rising 19% to 830,819 units in FY26. According to IMARC Group estimates, the electric three-wheeler market is expected to grow from $1.3 billion to $3.8 billion by 2034 at a CAGR of 12%.