New Hyundai Electric SUV Spied: The Ultimate Tata Punch EV Rival is Here

The Indian electric vehicle market is about to get a major shake up as Hyundai’s mystery micro SUV has been spotted testing on Indian roads for the first time. Caught navigating Mumbai’s dense city traffic, the new test mules have all but confirmed that Hyundai is preparing a rugged, sub 4 meter electric SUV specifically designed to take on the dominant Tata Punch EV.

While initial sightings sparked rumors of a new ICE model, closer inspection of the latest spy shots reveals a dedicated electric powertrain. With no visible exhaust pipe or fuel filler cap, and a likely front mounted charging port, the vehicle is being hailed as Hyundai’s most significant move toward mass market electrification in India.

Design: Ioniq Inspiration Meets Rugged Stance

The spied SUV features a boxy, upright silhouette that prioritizes road presence. Key design highlights include:

• Pixelated Lighting: Taking a page from the global Ioniq 5 and Inster EV, the test mule sports pixelated LED DRLs and tail lights.

• Morse Code Branding: The front fascia reveals four dots Morse code for the letter ‘H’ a signature design element found in Hyundai’s next generation EV lineup.

• Muscular Cues: The SUV is equipped with flared wheel arches, thick plastic body cladding, and 16 inch dual tone diamond cut alloy wheels wrapped in MRF rubber.

• Premium Touches: High end features like flush fitting door handles and a shark fin antenna were also visible, suggesting a premium positioning within the micro SUV segment.

Interior and Features: A Tech-Forward Cabin

While the interior remains mostly under wraps, glimpses through the window reveal a modern, digital heavy dashboard. The vehicle is expected to feature a 10.25 inch dual screen setup (infotainment and digital instrument cluster) similar to the new Creta and Venue.

Crucially, nodules on the outer rearview mirrors (ORVMs) suggest the inclusion of a 360 degree camera, a feature that would give it a competitive edge over current rivals in the sub compact space.

Positioning: The Tata Punch EV Rival

Hyundai currently has the Exter and the Venue in the sub 4 meter segment, but this new model appears to occupy a more rugged, EV specific niche. By developing a "Made in India" platform, Hyundai aims to achieve high levels of localization to keep pricing aggressive.

Industry experts believe this SUV will be manufactured at Hyundai’s recently operational Talegaon plant, which is strategically located near Mumbai where the testing is currently concentrated.

Launch Timeline

With testing now in an advanced public phase, a market debut is anticipated for late 2026 or early 2027. This timeline aligns with Hyundai’s broader strategy to launch a localized high volume EV for the Indian masses following the upcoming Creta EV launch.

As the competition in the entry level EV space heats up, Hyundai’s new "mini Ioniq" could be the volume driver the brand needs to challenge Tata Motors’ current leadership in the electric segment.