Hyundai Motor Company and TVS Motor are preparing to expand their electric mobility partnership beyond three-wheelers by developing an electric mini truck to compete with Tata Motors' Ace, according to two executives familiar with the plan.

The companies are targeting a 2027 rollout for the mini truck, the executives said. This follows the formalisation of their partnership to develop electric three-wheelers in April 2026. The companies are currently testing their jointly developed electric three-wheeler in Gurugram through Blue Move, a ride-hailing application being piloted with consumers and Hyundai India employees.

The proposed entry into the segment would allow TVS to expand its automotive business beyond two- and three-wheelers, while enabling Hyundai to extend its operations in India beyond passenger vehicles. Mahindra and Mahindra, Tata Motors and Maruti Suzuki India are also present 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 executives 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. Hyundai had stated that its development remained under review while the company assessed the vehicle's potential in global markets.

In April 2026, the companies signed a joint development agreement to develop and commercialise the electric three-wheeler.

Under the agreement, South Korean company Hyundai will lead the design and contribute its research and development expertise, while TVS, based in Hosur, 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 intended to serve domestic demand and future export markets.

Press queries sent by email to Hyundai and TVS remained unanswered. The proposed four-wheeler would extend the partnership into a segment in which TVS does not currently offer an electric mini truck.

Company already sells the Porter II Electric, a small electric cargo truck, in South Korea. Designed for urban deliveries, the vehicle has a claimed range of 217 kilometres on a single charge.

The proposed vehicle would enter a market in which Tata Motors, Mahindra Last Mile Mobility, Euler Motors and other manufacturers offer or are developing electric goods carriers.

Demand for small commercial vehicles is being supported by e-commerce, parcel deliveries and urban logistics, which involve frequent trips. Electric mini trucks can reduce running costs for fleet operators, particularly on high-utilisation routes, where savings on fuel and maintenance may offset the higher initial cost of an electric vehicle.

"For high-utilisation applications such as fleet logistics, parcel delivery, and intra-city transportation, these operational savings are a major incentive," said an official from a research company in its March 2026 report on India's electric commercial vehicle market.

The report projected that the market would grow at a compound annual growth rate of 28.1%, from US$ 0.9 billion in 2026 to US$ 3.1 billion by 2031. The government is developing fuel efficiency standards for commercial vehicles, which could affect the adoption of electric vehicles in the segment. The Bureau of Energy Efficiency has released draft standards for light and medium commercial vehicles weighing 3.5-12 tons, along with rules for heavier trucks. The standards have yet to be formally notified.