Maruti Suzuki has no plans to rush into the Indian market with a large number of electric vehicles.
This was made clear in the company’s most recent annual report, which stated that, despite the urgent need to reduce emissions and carbon footprint, India’s largest automaker does not expect a quick switch to battery electric vehicles (BEVs) in the near future. Maruti Suzuki will be late to the electric vehicle game, with most of its competitors launching EVs between 2021 and 2025.
Why is Maruti Suzuki so Late to The Electric Vehicle Party?
While automakers around the world are making “ambitious” plans to switch from internal combustion engines to BEVs, Maruti Suzuki’s electrification strategy must be “consistent with the country’s economic and infrastructure conditions,” according to the company’s annual report.
Bhargava discusses what is preventing people from purchasing BEVs. He claims that the main issues are low incomes, the current high cost of BEVs, and the country’s lack of charging infrastructure.
India’s average per capita income is around $2,000, which is about 5% of what it is in Europe and Japan. Many people will find it more difficult to afford expensive automobiles as a result of this. Electric cars are much more expensive than regular cars due to current technology. According to Bhargava, this, combined with the lack of charging stations, makes selling electric cars to people who can only afford modest cars extremely difficult.
Only 5% of passenger vehicle sales in India are for cars costing more than Rs 15 lakh, so only a small percentage of people will buy electric cars, according to Bhargava.