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As per reports, an official from Maruti Suzuki confirmed the news adding that testing on the prototype will start next month.
HEVs are vehicles that run on both an internal combustion engine and a battery.
The cars that will be manufactured by the joint venture will be charging themselves using the energy generated from the rotations of the wheels.
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The report states that the new HEV car could deliver a mileage of 27 kilometres per litre and could be priced at approximately Rs 10 lakhs.
Presently, Maruti Suzuki is also testing an EV trim of the hatchback Wagon R.