Introduced in April 2021, it is a long-wheelbase version of the subcompact Creta, whilst having additional third-row seating, styling changes, and a different powertrain option.

[12] The vehicle is also introduced with a reworked front styling, and a larger 18-inch wheels.

[15] For the 2023 model year, Hyundai gave the Alcazar a minor facelift for the Indian market which included minor styling changes, a standard auto start-stop system and a new 1.5-litre turbocharged petrol engine to replace the existing 2.0-liter petrol engine.

The Alcazar is available with a 2.0-litre petrol engine and a 1.5-litre diesel, with the former has a claimed 0–100 km/h (0–62 mph) acceleration figure of 9.5 seconds.

[13] For the 2023 model year minor facelift for the Indian market, a standard auto start-stop system was introduced, and a new 1,482 cc (1.5 L) 1.5 T-GDi turbo-petrol engine replaced the existing 2.0-liter Nu naturally-aspirated petrol engine.