TVS Motor and Hyundai sign agreement for electric three-wheeler development

TVS Motor Company Limited has entered into a Joint Development Agreement (JDA) with Hyundai Motor Company (HMC), to jointly develop and sell electric three-wheelers in India and other markets.

Under the agreement, HMC will lead the concept design, while both companies will jointly handle development phases. TVS Motor will have exclusive rights to manufacture the products globally. It will also have exclusive rights for sales and distribution in India and other agreed territories. HMC will have exclusive sales and distribution rights in Korea and other agreed regions.

The agreement involves mutual royalty arrangements. TVS Motor will pay per-unit royalties to HMC for sales in its markets, while HMC will pay compensation and royalties to TVS Motor for sales in its markets. The agreement does not specify a fixed term and will continue until terminated. The transaction is not classified as a related party transaction.

The agreement follows the presentation of an electric three-wheeler concept at the Bharat Mobility Global Expo 2025. The product is intended to address last-mile mobility requirements in India.

The collaboration combines HMC’s design, styling and technology inputs with TVS Motor’s manufacturing and distribution capabilities. TVS Motor will support development using its three-wheeler platform and will handle manufacturing and local sales. Production will be based in India, with a focus on domestic demand and exports.

The companies aim to develop, manufacture and commercialize electric three-wheelers for India and other markets. Both companies plan to localize component manufacturing in India. This is expected to support the supply chain, reduce costs, and enable after-sales service and spare parts availability, according to a company statement.

The concept includes features such as adjustable ground clearance, safety elements, interior configurations for passenger and goods use, and thermal management systems. The product will undergo testing, localization, and certification before launch. Both companies have formed teams to manage development and regulatory processes.

Commenting on the development, Sharad Mishra, President, Group Strategy, TVS Motor Company, said, “At TVS Motor Company, we aim to transform quality of life through sustainable and accessible mobility. The Joint Development Agreement marks an important step in our partnership with Hyundai Motor Company and advances our shared ambition to develop electric three-wheeler solutions. By bringing together complementary strengths – including our electric three-wheeler platform, engineering expertise, and deep understanding of customer needs – we are well-positioned to deliver purpose-built products for India and additional markets. This collaboration reinforces our commitment to scalable, sustainable last-mile mobility while setting new benchmarks in technology, quality, customer experience, and a legacy of trust.”

“Hyundai Motor Company has long explored ways to contribute to improving India’s transportation environment as a key market, and our collaboration with TVS Motor is a strategic decision rooted in that effort. We hope the co-developed E3W enables broader access to safer and more sustainable transportation for people across the country.” – Joongsun Ko, Senior Vice President of Corporate Strategy & Planning at Hyundai Motor Company.

TVS Motor Company operates manufacturing facilities in India and Indonesia and sells products in multiple countries. Hyundai Motor Company operates in over 200 countries and focuses on mobility technologies and vehicle manufacturing. the company reported consolidated revenue of 186,254,472 million Korean Won for the year ended December 31, 2025.

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