Maruti Suzuki India is gearing up to localise battery production and other critical components over the coming years as part of its strategy to strengthen the electric vehicle (EV) ecosystem in India.
The company, which plans to launch its first electric vehicle, the e VITARA, in the domestic market next year, aims to instill confidence in buyers while bolstering the overall EV ecosystem.
"Right now we are importing the batteries but yes we have a plan for localisation. It is very much on the cards in a phased manner over the next few years," Maruti Suzuki India Senior Executive Officer (Marketing & Sales) Partho Banerjee told reporters here.
He highlighted that electric vehicle adoption in India will grow only when consumers are confident enough to make an EV their primary car.
"We believe that the customer is not confident (about EVs). The initial products that were launched, and the experiences from those, has created a huge amount of negativity in the minds of people regarding the driving range," he added. He also noted that, to date, most EV buyers use the vehicles as a secondary option.
"It's not the primary car. Since public infrastructure is not there, the buyer doesn't want to take a chance. So if he wants to buy his first vehicle, it happens to be not in EV, but in ICE or some other vehicle," Banerjee said.
By FY30, Maruti Suzuki plans to offer five EV models in its product portfolio.
"By then, the industry will be around 5.5-6 million and EV penetration will be around 13-15 per cent. But this was before GST 2.0. So, we now have to reassess the market since there are reports that post GST 2.0, the penetration of EVs is going down. The ideal time to do it will be next FY," Banerjee stated.
He identified driving range, inadequate public charging infrastructure, and challenges related to after-sales service and resale value as major obstacles to EV adoption in India.
"We are trying to instill confidence in the customers before they acquire an EV. If the buyer is not confident about the entire ecosystem he will not buy an EV," Banerjee said.
Maruti Suzuki plans to operate 1,500 EV-enabled workshops across 1,100 cities nationwide and has already established 2,000 charging points.
"For the resale value we are going to have an assured buyback scheme and subscription scheme as well," he added.
Banerjee acknowledged that the lack of a comprehensive EV ecosystem is a significant barrier, noting that the industry is not growing at the same pace as internal combustion engine vehicles.
"OEMs should first make the products good, have a good after sales service, and create a good ecosystem," he said. "That gives better confidence to the customer."
Maruti Suzuki has already started exports of the e VITARA, shipping 10,000 units to 26 markets. The automaker aims to roll out multiple electric models across different body styles and expand charging infrastructure nationwide as it seeks to establish leadership in the segment.
The company plans to set up around 1 lakh charging stations by 2030 in partnership with dealer partners and charging point operators.
