Maruti Suzuki intends to launch multiple electric vehicles in India by 2025 in an attempt to catch up with its competitors and become a leader in the segment, as per the company’s new Managing Director and CEO Hisashi Takeuchi.
The company plans to launch its first EV model in 2025. It is looking to manufacture EVs from its factories in the future when the demand for EVs increases in the country. The first EV will be rolled out of the Suzuki Motor’s Gujarat plant.
Takeuchi made the following statement, “We are a little behind our competitors in introducing the (EV) model to the Indian market, but we see that still, the market demand for those EVs is limited. Sales of EVs in the Indian market are still very, very limited. But that does not mean we are doing nothing about EVs. We have done a very extensive test of our EV utilizing our existing models and putting those batteries and motors and everything into this existing model. We have been doing this test for more than a year with multiple cars in the Indian environment so that we are sure that our EV technology will be good in the environment, which is very, very tough in India.”
As per FADA, Tata Motors led the electric passenger vehicle segment in 2021-22 with total sales of 15,198 units in total, this means it has a market share of 85.37%. Total electric passenger vehicle retail sales last fiscal were 17,802, which is an increase of 4,984 units in FY21 as per the industry body.
The government is pushing for EV sales to increase all the way to 30% for private vehicles by 2030. Industry experts state that EVs could account for nearly 10% of total sales by 2030. When the volume expands they would wish to be a leader in the Indian auto space, which is not just restricted to ICE (Internal Combustion Engines) but all passenger cars.
In the EV space, Maruti Suzuki is looking to secure the number one spot and the leader in the Indian Auto space. Takeuchi said, “We have been doing tests and developing models prepared for Indian specifications. We said by 2025, we will introduce an EV but there are plans (for others) to follow. I’m sure that we can be very strong in the EV space also when we introduce our products into this EV market.”
He confirmed that multiple EV models would follow in due course once the company launches its first EV in 2025. Takeuchi, however, said EV is still very expensive and with the current technology it is quite difficult to make an affordable EV. Maruti Suzuki 2019 had tested an EV based on its WagonR with the intention of launching in 2020 but it decided against a commercial launch for the public due to the lack of infrastructure and government support, it has maintained that at the current prices it would be hard to sell affordable EVs on a mass scale.
The parent company Suzuki Corporation had announced that it would invest nearly 150 billion yen or 10,445 crores by 2026, for local manufacturing of Battery Electric Vehicles and BEC batteries in Gujarat.
“The investment this time is at Suzuki Motor Gujarat plant but that does not mean that we will not produce EVs in Maruti Suzuki’s plants, we have to produce in every factory over Maruti Suzuki as well as Suzuki Motor Gujarat (SMG) once EV becomes popular in India,” Takeuchi stated.
The decision to begin EV production from the SMG plant has been taken because the new EV is a strategically important model for the entire Suzuki Group Globally. The brand is planning to sell this car in the Indian market as well as other global markets as well. With respect to the semiconductor shortage, the CEO believes that the situation has improved to an extent but it is difficult to give a proper outlook.
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