- Plans to increase production capacity by 2 million units by 2031, necessitating an investment of Rs 45,000 crore.
- Maruti Suzuki’s subsidiary, Suzuki Motor Gujarat (SMG), will invest Rs 7,300 crore to build an adjacent EV battery plant.
India’s top car manufacturer, Maruti Suzuki, is ready to make its mark in the electric vehicle (EV) arena. The new EV is set to launch by 2025.
At the company’s 42nd annual general meeting, Chairman RC Bhargava confirmed they are preparing for a game-changing move with its first all-electric vehicle set to debut in the fiscal year 2024-2025, despite being a step behind its competitors. He also reaffirms the company’s commitment to the EV market and anticipates a strategic push towards capturing a significant market share.
“Yes, we are behind some companies in launching EVs, but that doesn’t mean we are late. We’re coming in FY 24-25; that has not, in any way, damaged our ability to secure market share. We have carefully assessed the environment for EVs in India.” Stated RC Bhargava.
He further highlighted Maruti Suzuki’s advantage through its global alliance with Toyota, which grants access to a spectrum of alternative fuel technologies, including electrification and hydrogen powertrain tech. As the company sets its sights on increasing production capacity by 2 million units by 2031, requiring an investment of Rs 45,000 crore, Maruti Suzuki’s evolution within the EV landscape remains a focal point of its future growth strategy.
The company is aiming to introduce six electric models by 2031. Despite concerns among shareholders about a potential lag in the launch compared to the competitors, Maruti Suzuki remains confident in its strategic approach. While Tata Motors leads the EV market with plans for 10 EVs by 2026 and Hyundai commits to launching six EVs by 2028, Maruti Suzuki’s strategy focuses on a more gradual yet calculated entry.
Maruti Suzuki will invest 150 billion yen (approximately Rs 10,445 crore) by 2026 to establish local EV manufacturing and battery production in Suzuki Motor Gujarat, Gujrat. Investing Rs 7,300 crore to construct an EV battery plant adjacent to its existing facility. An additional Rs 3,100 crore will be invested to ramp up EV manufacturing capacity by 2025.
While Maruti Suzuki is yet to introduce a battery electric vehicle (BEV) to the market, the company acknowledged the current gap in Maruti Suzuki’s EV launch timeline compared to rival companies but underlined that this delay will not hamper the company’s potential to excel in the EV segment. Maruti Suzuki’s deliberate entry into the EV market might position the company as a contender in the long run, emphasizing a strategic and calculated approach to immediate market penetration.
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