Maruti Suzuki India and the Journey of Electric Vehicles in India
Maruti Suzuki India Motor Industries Limited (MSIL) has been a trailblazer in the Indian automobile industry, and its plans for electric vehicles (EVs) have been met with both anticipation and skepticism. After postponing several times, MSIL has finally set a launch schedule for its first electric vehicle (EV), the WagonR, for 2024, with plans to expand its EV portfolio starting in 2026.
The Journey to Electric Vehicles
Back in 2018, Maruti Suzuki had announced its ambitious goals for electric vehicles, promising to launch its first EV by 2020. However, the company faced delays in 2019 due to challenges in charging infrastructure and the high cost of batteries. These setbacks have not deterred the company from pursuing its EV strategy, as industry sources reveal.
With competitors like Tata Motors and Hyundai Motor planning to launch their EV models in 2026 and 2028, respectively, Maruti Suzuki is strategizing to leverage the growing market demand and infrastructure improvements in the coming years.
Investment in Battery Technology and Partnerships
Maruti Suzuki is taking a proactive approach by investing heavily in battery technology. The company has partnered with renowned firms such as Toshiba and Denso to manufacture batteries for its future electric vehicles. Additionally, Maruti Suzuki has commissioned India’s first lithium-ion cell manufacturing plant in Gujarat, a joint venture with Toshiba and Denso, which is slated for trial production.
MSIL spokespersons have stated that the company aims to launch an EV by 2025, with prototype development and testing ongoing as planned. While pricing remains a primary concern, the company acknowledges that mass-market EVs at around 10-12 lakh (Indian Rupees) are not feasible currently.
Market Trends and Future Prospects
According to industry reports, the number of public EV charging stations in India was approximately 2,900 as of September 2022. This is projected to rise dramatically, reaching around 79,000 charging stations by 2025. Furthermore, the number of electric car sales is expected to climb from around 6,000 units in 2022 to approximately 1.75 lakh units by 2028, growing at a Compound Annual Growth Rate (CAGR) of 53%.
Analysts suggest that it is a good time for Maruti Suzuki to launch a mass-market EV, as the availability of charging infrastructure and increased customer acceptance are expected to support the segment. Recently, successful models like Tata Motors' Tigor EV and Nexon EV, priced at 12-15 lakh, have demonstrated strong market demand.
Economists and market analysts believe that Maruti Suzuki's strategy of delaying the EV launch aligns with its overall business objectives. By the time the company successfully introduces its EV lineup, the necessary infrastructure and wider customer base will be more established.
In conclusion, while Maruti Suzuki India has faced initial delays, its strategic approach to electric vehicles, backed by significant partnerships and investments in battery technology, positions the company well for the vibrant future of the Indian EV market.