The electric vehicle wave is currently passing through India. Many new car and bike manufacturers have forayed into the segment. Mass-market manufacturers such as Tata, MG and Hyundai are already retailing their electric vehicles. Mahindra too plans to introduce two new electric cars in India soon. But one of the largest vehicle manufacturers in the Indian market, Maruti Suzuki, will not foray into the segment anytime soon.
Electric Vehicles in India Not Targeted Towards Low-Income Bracket Customers
At the 61st SIAM (Society of Indian Automobile Manufacturers) annual convention, Maruti Suzuki Chairman RC Bhargava revealed that the brand would not enter the EV market space in the short term. The brand’s honcho expressed doubtfulness as even the entry-level electric vehicles do not target people with low-income brackets.
Why Should Electric Vehicles Not Be Incentivised?
According to RC Bhargava, electric vehicles that comply with European standards are too expensive to offset conventional automobiles’ purchase and running costs even after government subsidy. Therefore, the low-income bracket audience will not be purchasing these expensive EVs. Hence, the government should not incentivise electric vehicles. The electric vehicle sales also remain minimal in India, and only a fraction are sold compared to the Indo-Japanese brand and has no impact on Maruti Suzuki’s market share.
Maruti Suzuki – Futuro E
At the 2020 Auto Expo in Delhi, Maruti Suzuki unveiled the Futuro E, a homegrown SUV concept. Speculations were that the production version that will spawn from the Futuro E would come with a hybrid powertrain. At the biennial event, the brand also announced its Mission Green Million initiative. Mission Green Million is Maruti Suzuki’s commitment towards eco-friendly vehicles, which also include CNG fuel vehicles. The brand has also reportedly shelved its plans to launch a WagonR based all-electric vehicle. The Maruti Suzuki WagonR Electric plans are on hold due to the techno-economic viability of the product in the Indian market.