Maruti Says EV 'A Priority Objective' But First Electric Car Still Six Months Away

Electric vehicles are "a priority objective" for Maruti Suzuki India Ltd., its chairman has said, but India’s largest carmaker is yet to launch a product in the nascent but fast-growing automotive segment.

"We are in the process of introducing EVs. Our first EV model will be in production and out for sale in a few months' time," RC Bhargava, chairman of the New Delhi-based carmaker, said during the company’s 43rd annual general meeting on Tuesday. The car, in its production guise, is likely to be showcased at the auto expo next year.

"We will be exporting the EVs to Europe and Japan. Over the next 6-7 years, we will be adding a total of six EV models to our portfolio."

So far, Maruti Suzuki has chosen to observe India’s evolving EV landscape from the sidelines even as smaller rival Tata Motors Ltd. has taken a head start, so much so that its EV business is now a billion-dollar enterprise. Nearly three out of every four electric cars sold in India today sport a Tata logo on the hood.

Elsewhere, Mahindra & Mahindra Ltd. is in "advanced stages" of starting production of its born-electric portfolio of SUVs. It currently retails one electric SUV—the XUV 4OO.

South Korea's Hyundai Motor Co. Ltd., which has filed for an India IPO due later this year, plans to launch an electric variant of its best-selling Creta SUV in January 2025.

Tata Motors itself has doubled down on its EV focus. It has entered the lucrative mid-size SUV segment with an electric powertrain and plans to have a battery-powered variant of all its offerings by next year.

Maruti Suzuki, meanwhile, has chosen the middle path—that of hybrid vehicles. If numbers are anything to go by, that strategy is working: only five strong-hybrid cars—four of them products of ‘Suzuki-Toyota’ cross-badging—outsold all electric cars in India in 2024.

"The importance of hybrid cars is obvious. Hybrid cars are not in conflict with EVs," Bhargava said at the AGM.

"While EVs have to grow, the remaining vehicles with petrol and diesel (powertrains) have to evolve so that the total carbon emissions come down. Whether it is hybrids, CNG, biogas, or ethanol…all of these will help convert petrol and diesel cars into cleaner vehicles."

To be sure, Maruti Suzuki is "constant touch" with the centre and states to encourage the adoption of different powertrains, including hybrids.

"We have seen that not only Uttar Pradesh, but several states have now given some soft concessions to hybrids. It is being recognised that only one technology is not the right answer for India."

Additionally, electric cars are expensive.

Batteries make up nearly 40% of the cost of an EV. And in the absence of localised cell manufacturing, imports make them costlier still.

"We are all concerned about the cost of EV, and we are concerned about how to lower the cost," Bhargava said. "The fact of the matter is that the battery technology is to be substantially improved for cost to reduce."

On Tuesday, Maruti Suzuki shares rose 2.04% to Rs 12,496.60 apiece on the BSE even as the benchmark Sensex ended the day 0.02% higher at 81,711.76 points.