SUV Market Set for An Exciting Year in 2026

The SUV market in Nepal is set for an exciting year in 2026. A number of highly anticipated models are expected to arrive early next year, offering more choice along with upgraded technology, and enhanced comfort. Among the vehicles on their way to Nepal are Hyundai’s all-new Venue, Tata Motors’ revived Sierra, and GAC Aion’s electric i60.

Hyundai Venue: A Bigger, Smarter Compact SUV

Hyundai is not just updating the Venue—it is completely reimagining it. Unveiled in India on November 4, the second-generation Venue introduces a more mature look and noticeably more premium feel in every respect.

The 2025 Venue is larger in every dimension. It now measures 3,995 mm in length, 1,800 mm in width, and 1,665 mm in height, with a 2,520 mm wheelbase. This makes it 48 mm taller and 30 mm wider, resulting in a noticeably roomier interior. Visually, the compact SUV stands out with quad-beam LED headlamps, twin-horn LED DRLs, horizon-style LED positioning lamps, and connected rear rear LED tail lamps. Dark chrome accents on the radiator grille, bridge-type roof rails, and a signature C-pillar garnish with an in-glass VENUE emblem help give the vehicle a bold, modern presence.

Inside, the Venue steps up its game with a premium cabin that includes dual 12.3-inch curved panoramic displays, dual-tone leather seats with VENUE branding, and a coffee-table-style center console enhanced with ambient lighting. Passenger comfort is further improved with a D-cut steering wheel, an electrically adjustable driver’s seat, two-step reclining rear seats, rear AC vents, and rear window sunshades.

The model comes loaded with technology, including a Bose 8-speaker audio system, ventilated front seats, a Surround View Monitor (SVM), wireless Android Auto and Apple CarPlay, a voice-enabled smart sunroof, over-the-air updates for 20 controllers, and more than 70 Hyundai BlueLink connected features. Safety is equally comprehensive, with 33 standard features, including ESC, hill-start assist, six airbags, all-wheel disc brakes, and a rollover sensor. Higher variants boast a Tire Pressure Monitoring System (TPMS) and an electrochromic rearview mirror with integrated telematics controls.

The Venue is offered with three engines: a 1.2-liter Kappa MPi petrol, a 1.0-liter Kappa Turbo GDi petrol, and a 1.5-liter U2 CRDi diesel. Buyers can choose from six monotone and two dual-tone exterior colors. Introductory prices in India start at 789,900 Indian rupees for the HX2 MT variant.

Venue is one of the best-selling SUVs in Nepal. Laxmi Intercontinental, the sole authorized distributor of Hyundai in the country, has confirmed that the new model is on the way. “While the launch date has not been finalized, we are tentatively planning to introduce it in January or February,” Dipesh Shakya, Marketing Head at Laxmi Intercontinental, told New Business Age.

Tata Sierra: The Icon Returns

The legendary Tata Sierra is back. Tata Motors launched the all-new Sierra SUV in India on November 25, reviving a nameplate that had been absent since 2003. An electric version is expected in 2026.

The new Sierra retains the essence of the original but adopts a fully modern design. The front features sleek LED headlamps and a clean light bar that stretches across the width of the SUV. A matching LED strip at the rear gives it a futuristic look. Staying true to the Sierra heritage, the SUV maintains a boxy profile, complemented by flush-fit door handles, blacked-out mirrors, and a floating roofline that adds a touch of sophistication. Large dual-tone alloy wheels reinforce its rugged character, while a panoramic sunroof—echoing the iconic “wraparound” glass of the first-generation Sierra—enhances its design identity.

Inside, the Sierra offers a spacious cabin designed to feel more like a personal lounge than a typical car interior. Soft-touch surfaces, warm color tones, and gentle ambient lighting create a calm, premium environment. The dashboard features a triple-screen setup: a digital driver display, a central infotainment unit, and a dedicated passenger screen. The steering wheel also features an illuminated Tata logo, adding a contemporary flourish.

The SUV comes with three engine choices: a 1.5-liter petrol, a more powerful 1.5-liter turbo-petrol, and a 1.5-liter diesel. With its blend of heritage-inspired styling, modern features, and multiple powertrain options, the new Tata Sierra is set to compete with popular midsize SUVs such as the Hyundai Creta, Kia Seltos, and Maruti Suzuki Grand Vitara. Regarding its arrival in Nepal, Aviruchi Giri, Marketing Manager at Sipradi Trading—the official distributor of Tata Motors—told New Business Age that the Sierra will be launched in the domestic market within the first quarter of 2026.

Aion i60: The New Electric Challenger

Chinese EV manufacturer GAC Aion has expanded its lineup with the launch of new Aion i60 on November 16. Offered in both pure electric and range-extended configurations, the five-seater compact SUV is priced between 109,800 and 135,800 yuan ($15,400–19,000). The range-extended model uses GAC’s “Xingyuan Range-Extended System” which delivers a 210 km electric-only range with fast 3C charging. The pure electric version, on the other hand, offers a maximum range of 650 km on a single charge. The Aion i60 features a modern exterior design, with sharp upward-swept headlights, a continuous front fascia, and an air-intake-style bumper. At 4,685 mm long, 1,854 mm wide, and 1,660 mm high, it is slightly larger than the Aion V but remains a dedicated five-seater. Notable features in the i60 include semi-hidden door handles, “blue light” side mirrors, and 18- or 19-inch wheel options. The rear houses a through-type taillight, a self-illuminating logo, an electric tailgate, and rear doors that open nearly 90 degrees.

The SUV is available in six color options, including Warm Velvet Gold, Galaxy Blue, and Arctic White.

The interior features a two-tone design, metallic trims, and three color options: Oat Milk White, Warm Velvet Light Brown, and Tahiti Grey. The i60 includes 32-color ambient lighting, a floating central screen, a digital instrument display, scroll-wheel steering, and dual wireless charging pads. For safety and driver assistance, the SUV comes with GAC’s GSD intelligent driving system that supports high-speed navigation and intelligent parking.

The pure electric Aion i60 uses a 75 kWh battery that offers up to 650 km of driving range. The range-extended version combines a 1.5-liter engine with an electric motor to achieve a combined range of 1,240 km and fuel efficiency of 5.5L/100 km. Its battery can charge from 30% to 80% in just 15 minutes. The i60, however, will not arrive in Nepal immediately. “We are expecting the car to arrive in late 2026,” said Kapil Shiwakoti, CEO of CG Motors, the authorized distributor. He added that the Aion ES and Aion UT are also slated for launch next year.

This article was originally published in the December issue of New Business Age magazine.