Why is Maruti not launching EVs?
While other car manufactures are in the race of launching their EV offerings, Maruti Suzuki seems unmoved by the EV hype. Hyundai, MG, and Tata Motors are entering the electric car market. Bajaj Auto, and TVS Motor Company entering the electric two-wheeler market. Even Honda has made an announcement. Maruti has taken a back seat and currently is a mere spectator in the EV race. In this article, we will discuss why Maruti has not yet launched any EV.
Story so far….
In 2020 the BS6 norms were implemented and a lot of things changed, especially for a big brand like Maruti. This is when Maruti discontinued its diesel engines and scrapped its plans to make cars with diesel engines in the future. Maruti had previously planned Rs 1500 core to develop a BS6 compliant diesel engine. But they shifted their focus to greener modes of transportation. One-third of their current sales come from CNG variants of the cars sold. Maruti also has smart hybrid cars that give higher mileage compared to the normal petrol engines. In 2021 they came up with an S-Presso, the only new product from Maruti Suzuki so far.
What Maruti has
Maruti had announced the electric version of WagonR in 2018. Since then the car was also spotted doing its test runs. Even Suzuki has some hybrid cars that are sold in other countries. These cars can be seen coming to India in the future.
Why no EV yet?
Currently, the most affordable electric vehicle is the Tata Tigor EV that is priced around Rs 12 lakh. The cost of manufacturing an electric vehicle is more than that of a conventional car because of the technology and batteries involved. People with a tight budget can only afford a small car priced at Rs 5 to Rs 8 lakh. An EV with a price tag of Rs 15 lakh and above is way out of reach. Lack of charging stations, and the infrastructure required for electric vehicles is in its stages of infancy, which is also another reason for Maruti. Maruti would want to make EVs affordable for the masses where they can sell more products. As of today, Maruti Suzuki offers mild-hybrid powertrains on some of its popular models like the Ertiga, Baleno, and Vitara Brezza.
For Maruti, selling a cheap car in the hatchback segment is where their market lies. Electric cars priced over their best sellers like the Swift, Baleno and WagonR will be a tough sell if the price difference is too much.
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