Maruti Suzuki plans to launch the brand’s first electric vehicle in the Indian market by 2025. However, the price warrior brand will not likely be able to breach the INR 10 lakh mark in terms of the price of the upcoming electric vehicle. According to reports, Maruti Suzuki’s electric vehicle will be slightly more expensive than the INR 10 lakh mark, which is a crucial price bracket for the mass market. In the recent past, Maruti Suzuki announced that the brand is shelving its electric vehicle project because it will not be able to justify the price tag as compared to the ICE-powered vehicle it was based upon.
Maruti Suzuki and Affordability
According to the new CEO, Hisahi Takeuchi, the high cost of technology in the EV segment is responsible for the high prices. The head honcho also revealed that due to the cost of technology and battery, it is difficult to bring the price of the EV down. The CEO also revealed that Maruti Suzuki is known for its affordability, but it is still difficult for the company to bring an affordable EV.
Small Battery, Smaller Price
Hisahi Takeuchi also reveals that if the customer is ready to accept a very small battery, then it may be possible. But around 150 km of battery charge is going to lead to range anxieties. Also, lithium-ion batteries make up around 40% of the EVs cost. A smaller battery would solve the cost issue, but to support this, the country would need to have a robust fast-charging infrastructure to avoid customers running out of charge.
Lithium-Ion Battery Packs to see Price Hike
According to Bloomberg NEF, the lithium-ion battery pack prices fell sharply from USD per 1220 kWh to USD 140 per kWh in 2020. In 2021, the prices fell from USD 140 per kWh to USD 132 per kWh, which is a 6% decline. However, in 2022, the prices rose marginally to USD 135 per kWh, increasing the prices of the EVs. By 2024, the lithium-ion battery price is likely to fall below the USD 100 per kWh mark, allowing it to reach parity with its fossil fuel counterparts.
Also Read: 1st EV from Maruti Suzuki & Toyota will be a mid-size SUV
