Maruti Suzuki will launch many electric vehicles models in India in its bid to catch up with competitors and become a leader in the segment, despite not being present there at now, as per the new Managing Director and CEO Hisashi Takeuchi.
Maruti Suzuki plans to launch its first EV model in 2025, also plans to produce EVs from its factories in future when the demand for EVs picks up in India.
To start with, the first EV will be roll out from Suzuki Motor Gujarat’s plant.
Managing Director and CEO Hisashi Takeuchi Said :
Hisashi Takeuchi was responding to a query on whether Maruti Suzuki India has given away the first mover advantage in the EV segment to competitors like Tata Motors.
According to FADA, Tata Motors led the electric passenger vehicle segment in 2021-22 with retails of 15,198 units and a market share of 85.37% in the vertical.
Total electric passenger vehicle retail sales last fiscal stood at 17,802, up over three-fold, from 4,984 units in FY21, the latest data from the industry body reveale.
Government is pushing for EV sales penetration to rise to 30% for private cars by 2030.
Citing industry experts that EVs could account for 10% by 2030, Hisashi Takeuchi said when the volume expands “of course, we would like to be a leader in the Indian automotive space, which is not just limit to IC (internal combustion) engines but all passenger cars.
Also in the EV space, we would like to become the number one and the leader in the Indian automotive space.”
Hisashi Takeuchi Said :
Hisashi Takeuchi confirm that multiple EV models would follow in due course once the company launches its first EV in 2025.
Mr. Hisashi Takeuchi said EV is still very expensive and with the current technology it is quite difficult to make a very affordable EV.
Hisashi Takeuchi ask if that meant the company’s first EV will not be under Rs. 10 lakh, Hisashi Takeuchi Said :
An EV can become cost competitive if the battery is smaller but that would reduce the range and in turn will create range anxiety for consumers, Hisashi Takeuchi said, he adds that such an EV could be successfully sold only if there is adequate charging infrastructure with quick charging options.
Maruti Suzuki had earlier in 2019, tested an electric vehicle based on its WagonR with plans to launch in 2020 but decided against a commercial launch for personal usage citing lack of infrastructure and government support and has maintain that at the current prices it would be difficult to sell affordable EVs at mass scale.
Last month parent Suzuki Motor Corporation had announce that it would invest around JPY 150 billion (approx. Rs. 9,050 crore) by 2026, for local manufacturing of Battery Electric Vehicles (BEV) and BEV batteries in Gujarat.
Hisashi Takeuchi Said :
The decision to start EV production from the SMG plant has taken “because this new EV is a strategically important model for the entire Suzuki group globally.
We are planning to not only sell this car in the Indian market but also export as well.”
Commenting on semiconductor shortage, Hisashi Takeuchi said the situation has improved a bit but it is difficult to give an outlook.
Hisashi Takeuchi said the company still has pending orders of over 2.7 lakh vehicles.
Although Maruti Suzuki market share has drop to 43.4% in FY22 as compared to 47% in FY21, the company expects it to improve with the planned launch of new SUVs and improvement in the supply chain.
MSI’s dispatches to dealers last fiscal stood at 13,31,558 units, as compare with 12,93,840 units in the 2020-21 financial year.