Maruti Suzuki Goes Green: Launching First Electric Vehicle Alongside CNG and Hybrid Cars in FY24

Maruti Suzuki, India’s largest car manufacturer, announced plans to launch its first electric vehicle (EV) during the current financial year. The company aims to promote a range of eco-friendly technologies, including strong hybrid, biogas, flex-fuel, and CNG, to help reduce emissions and fuel consumption in India.

Diversified Approach to Green Technologies

Maruti Suzuki’s Chairman, R C Bhargava, emphasized the importance of providing customers with various technology options at different price points, considering India’s unique economic and social conditions. In their annual report released on Sunday, Bhargava mentioned that alongside the upcoming electric cars, customers should be encouraged to consider vehicles using strong hybrid technology, CNG, or ethanol and biogas, to decrease reliance on pure petrol and diesel cars. Strong hybrid vehicles, for example, can reduce fuel consumption by 35-45%.

The Potential of Biogas

Additionally, Bhargava highlighted the potential of biogas, which can be produced from agricultural, animal, and human waste. He noted that biogas is completely renewable, has no import content, and is carbon negative. Maruti Suzuki has already started trial production of biogas and is looking for government policies to support the rapid development of this fuel.

Industry Debate on Hybrid Vehicles

Bhargava’s remarks come as automakers in India debate the benefits of hybrid vehicles. Companies like Maruti Suzuki and Toyota Kirloskar Motor are advocating for tax reductions on hybrid vehicles to encourage a transition to full electric, while others like Tata Motors and Mahindra & Mahindra argue that promoting alternate technologies could slow down the adoption of battery electric vehicles.

Tax and Incentive Landscape

Currently, India imposes a 5% GST on EVs, compared to 28% (plus cess) on hybrids, with some state governments offering additional incentives for EVs. Bhargava defended Maruti Suzuki’s diversified approach, saying the company didn’t want to rely solely on one technology. He noted that some states, like Uttar Pradesh, have already started supporting a range of technologies to replace petrol and diesel cars.

Future Product Line-Up and EV Goals

At present, Maruti Suzuki offers two strong hybrid models: the SUV Grand Vitara and the MPV Invicto. The company plans to launch its first EV later this fiscal year and aims to have six electric models by FY31. Bhargava stressed that the widespread adoption of EVs depends on lowering costs and building more charging infrastructure, which can be achieved through local production and better technology.

Commitment to Affordable Mobility

Maruti Suzuki also plans to produce more SUVs and higher-cost cars, but Bhargava assured that the company will continue to cater to those who can’t afford expensive vehicles. He highlighted the importance of small car sales, which have been declining due to higher costs and a growing preference for feature-rich SUVs. Bhargava emphasized that small cars are crucial for the overall growth of India’s passenger vehicle market, as they attract many first-time buyers.

A Vision for Widespread Mobility

Maruti Suzuki Managing Director Hisashi Takeuchi expressed a personal mission to bring the “joy of mobility” to as many Indians as possible, noting that currently, only 3% of the Indian population owns cars.