Maruti Suzuki Aiming For 15-20% EV Production By Fiscal 2031, Says Chairman RC Bhargava
One in five cars produced by the company will be electric by 2030, it expects.
Maruti Suzuki India Ltd. has signed a Memorandum of Understanding with the state of Gujarat to start a fourth line of production to manufacture electric cars.
Maruti Suzuki has chosen Gujarat to put up its fourth line of production, subject to the availability of land, the MoU said. While the land acquisition is expected to be completed in a few months, the production is expected to begin by 2028, RC Bhargava, chairman of Maruti Suzuki, told NDTV Profit.
One in five cars produced by the company will be electric by end of the decade, it expects. "The present estimate is that by 2030-31, something between 15-20% of our total production will become EVs, which of course can't be done with one line and therefore, once this line is fully utilised we will have to convert more of the existing lines to EV," said Bhargava.
While the production of EVs will depend on the demand for the vehicle, Bhargava expects half of the manufactured vehicles to be exported. The first lot of EVs that would be introduced by FY26 would be exported. Maruti Suzuki aims to export 7.5 to 8 lakh units by FY31, of which a certain percentage will be electric, he said.
"EV penetration first will be much easier at the upper end of the market... The customer psychology of the small car buyer is such that getting a large penetration of EVs into that segment is going to be a longer period of time requirement and a harder job to do," the chairman said.
This is why Maruti plans to focus on biofuels as an alternative to EV. This will also help cater to buyers in the segment.
The company also plans to localise battery production, which is the biggest challenge for localisation of EVs, according to Bhargava. Maruti will need to look at production of new technology when it comes to battery, he said.
Electric usage by EVs increases the need for power generation, which in turn increases carbon footprint. Hybrid technology has a lower carbon footprint than EVs, as they present a mix of fuel, Bhargava said.
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