Here’s why India’s largest carmaker is not entering the EV market

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India’s largest carmaker Maruti Suzuki is not in a hurry to enter the country’s booming electric vehicles market as major players in the automobile industry are in a race to encash the opportunity. Even when the Centre and several state governments are pushing for EVs by providing subsidies, Maruti Suzuki has made it clear that it will enter the segment only when it is able to provide affordable cars for the customer.

Feasibility, affordability and profitability

Maruti Suzuki’s chairman RC Bhargava while virtually addressing shareholders at the company’s annual general meeting on Aug 24 said that Maruti Suzuki is looking at the EV market but will enter only when it is feasible for customers and the company is able to sell reasonable numbers without incurring any loss, according to a report in the Mint.

Bhargava said that the Centre is currently focusing on the electrification of two-wheelers and automakers like Hero Electric and Ola have been focusing on product interventions. He added that only a few carmakers have brought EVs into the passenger vehicles segment and their sales volume has been very minimal.

Bhargava also clarified that the popular Indian car manufacturer remains unaffected in terms of market share despite the introduction of new products by EV manufacturers.

Competition

The Indian giants in the automobile industry Tata Motors, Mahindra and Mahindra, Bajaj Auto and TVS Motor have already launched their respective EVs across segments. In a bid to push sales of EVs the Centre has extended the second phase of the Faster Adoption and Manufacturing of Hybrid and Electric vehicle (FAME) scheme by two years till March 31, 2024. The scheme was to end in 2022.

Maruti Suzuki dominates the Indian car market in the utility vehicle segment with offerings like Vitara Brezza, Ertiga, XL6 and S-Cross. It gives tough competition to South Korean automaker Hyundai in this particular category.

Bhargava said Maruti Suzuki currently leads the passenger vehicle segment and also has intentions of leading the EV segment as well. He stressed the fact that EV penetration will be possible only when conditions become favourable for consumers to buy it.