The partnership between TVS Motor Company and Hyundai Motor Company is expanding beyond vehicle development into mobility services, with the two companies piloting a ride-hailing app using jointly developed electric three-wheelers in Gurugram.
According to two executives familiar with the matter and vehicles seen on ground by Mint, the EVs are being deployed through Blue Move, a new ride-hailing app currently being tested with consumers and Hyundai India employees within an 8-10km radius of Hyundai India’s headquarters.
The initiative builds on the memorandum of understanding signed in April between the two automakers and could represent a rare instance globally of two vehicle manufacturers collaborating, not only on product development but also on testing a ride-hailing platform.
The potential launch of a ride-hailing business would broaden the revenue opportunities available to both Hyundai and TVS, which have been seeking to expand their footprint across the mobility ecosystem.
Queries emailed to TVS, Hyundai India and Hyundai Motor Company remained unanswered till press time.
Pilot phase
“A feasibility study is being done to understand the challenges faced in running such a service using the jointly developed vehicles. It is currently free of cost and it is able to give insights on the performance of the product as well as the ride hailing platform,” the first executive said on condition of anonymity.
Mint could not independently verify the number of vehicles currently operating as part of the pilot. While the app has been developed and is being managed by Hyundai, TVS is manufacturing the vehicles.
Korea-based Hyundai is drawing on its experience of building a ride-hailing business in its home market through Shucle, which operates shuttle services on specific routes.
“The app has been developed by Hyundai. The idea is to explore an affordable electric mobility option for consumers within specific routes and whether it can make commercial sense,” the executive added.
Product testbed
Based on vehicles seen by Mint, the electric three-wheelers offer a first-of-its-kind proposition, featuring air-conditioning and infotainment systems inside the auto-rickshaw. The concept was unveiled by the two companies at the Bharat Mobility Expo in January last year.
Under the partnership, TVS Motor will manufacture and export the vehicles, which have been co-developed by Hyundai Motor Company and TVS. The products are built on TVS’ technology platform and resemble its flagship TVS King three-wheeler models.
“The 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 and customer expectations,” the companies said in a joint statement in April.
Mobility bet
The pilot comes at a time when the Delhi-NCR region is exploring ways to curb pollution by accelerating the adoption of electric vehicles.
Ride-hailing platform Rapido has also highlighted the opportunity in the three-wheeler segment, identifying it as a key growth area over the next few years.
Since ride-hailing apps first entered India through Ola in 2010, automakers have largely remained on the sidelines, preferring to invest in mobility platforms rather than operate them. Hyundai invested in Ola in 2019, while TVS acquired a stake in Rapido in 2022.
The three-wheeler segment has also emerged as the most electrified category in India's automotive market.
Electric three-wheeler sales rose 19% to 830,819 units in FY26, with penetration reaching 61%, up from 57% a year earlier.
The market is led by Mahindra & Mahindra and Bajaj Auto, with market shares of 12% and 10%, respectively. TVS Motor ranked fourth with a 3% market share in FY26, according to data from the Federation of Automobile Dealers Associations (Fada).
According to estimates from analytics firm IMARC Group, the electric three-wheeler market is expected to grow from $1.3 billion to $3.8 billion by 2034, at a CAGR of 12%.
“The ride hailing option is something worth trying as there is a gap in the market for such an offering. This is also being seen in the cab segment due to absence of BluSmart,” said Subhabrata Sengupta, partner at Avalon Consulting.
Industry executives also said that operating vehicles on a platform controlled by the manufacturers could provide valuable real-time product insights based on customer and driver feedback, helping refine both vehicle design and operating economics before a wider commercial rollout.