Maruti Suzuki has revealed that the brand will wait for the battery cost to drop down before making a move in the electric vehicle segment. At the same time, electric vehicle sales have picked up in the Indian market. According to the brand, the sale has been boosted thanks to the various subsidies from the central and state governments. However, Maruti Suzuki thinks that when these incentives are cut off, the cost of acquisition will see a sharp increase.
High Battery Cost
The cost of acquisition of the battery is currently too high. According to Maruti Suzuki, unless the battery costs don’t drop, the reduction of prices on EVs will still be a barrier. The consensus is that only 8 to 10% of the market in India will consist of EVs even till the year 2030. Therefore, the reduction of electric vehicle batteries only seems to be a viable option. Battery price reduction is the only solution to encourage EV adoption on a large scale.
Charging Infrastructure
Talking about the charging infrastructure, the brand thinks that the ecosystem is still not mature in the Indian market. As of now, the adoption of electric vehicles is even in places with good electric charging infrastructure. Currently, consumers still have the range anxiety for charging their electric vehicles. However, brand’s like Tata Power is keen on creating a large ecosystem for electric cars in the country. Indian Oil Corporation and Bharat Petroleum are also working towards creating nearly 17,000 EV chargers in the coming years.
Improving Efficiency on Internal Combustion Engine Vehicle
Maruti Suzuki believes that the current line of Internal Combustion Engines should be made more efficient. One way of improving them is through electrification, and Maruti Suzuki already has a line-up of Smart Hybrid vehicles such as the Vitara Brezza, Ertiga, Ciaz, XL6 and S-Cross. The brand is also likely to introduce strong Hybrid vehicles in the Indian market, thanks to its partnership with Toyota. Also, Maruti Suzuki is working on providing more vehicles with alternative fuels such as CNG.
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