Maruti Suzuki to Launch Electric Vehicles in 2024: Unlocking the Future of Road Transport
Maruti Suzuki India, a leading player in the Indian automotive market, is set to unveil its first electric vehicle (EV), the WagonR, in 2024. This announcement comes as part of a broader effort by the company to integrate electric vehicles into its product lineup. With plans to diversify its portfolio from 2026, Maruti Suzuki is positioning itself at the forefront of India's transition to sustainable transportation.
Delayed Launch and Future Plans
Initially, Maruti Suzuki India had been delaying the launch of its first electric vehicle since 2018. According to sources, the primary reasons for this delay were the global pandemic and a lack of charging infrastructure along with high battery costs. Despite these challenges, the company is now confident about its readiness to enter the EV market. By 2025, the company aims to have at least 10,000 electric vehicles on the road each month.
Key Developments
For those tracking the latest developments in the electric vehicle sector, Maruti Suzuki India is set to launch the WagonR in 2024. The company is also planning to build its product portfolio starting in 2026, and has been actively investing in battery technology. In a significant move, it has partnered with companies like Toshiba and Denso to not only manufacture batteries for its future cars but also supply to other original equipment manufacturers (OEMs).
Maruti Suzuki India has informed that it is currently in the prototype development and testing stage, with a first lithium-ion cell manufacturing plant in Gujarat already operational. The plant, with an investment of 1.2 billion rupees, is set to produce batteries for the company's upcoming EVs. This investment underscores the company’s commitment to harnessing the latest advancements in battery technology.
Market Trends and Strategies
The decision to launch the WagonR by 2024 and expand the product portfolio in the subsequent years is based on several strategic considerations. While Tata Motors and Hyundai Motor plan to launch EV models by 2026 and 2028 respectively, Maruti Suzuki aims to seize the opportunity as charging infrastructure and customer acceptance increase. The company’s main concern is the pricing of mass EVs, and it has consistently stated that it is not feasible to produce an EV for around 10-12 lakhs (approximately $14,000 - $16,000 USD).
According to industry analysts, the timing is ideal for Maruti Suzuki to launch a mass-market EV as more charging infrastructure will be available by then. Kiran Bhandari, a New Delhi-based analyst, notes, 'Their Maruti strategy is to delay the launch by a few years so that they can enjoy the sales of CNG vehicles. For MSIL profitability is the main concern, and for EV, they have the same strategy. By the time they get the EV into the market, the infrastructure will be readily available in most cities across India.'
Industry reports suggest that as of September 2023, there are around 2,900 public EV charging stations. However, this number is expected to grow to 79,000 charging stations by 2025. Additionally, electric car sales are projected to increase to 1.75 lakh units by 2028, growing at a Compound Annual Growth Rate (CAGR) of 53 percent, from an estimated 6,000 units in 2023.
Conclusion
The launch of the WagonR as Maruti Suzuki's first electric vehicle in 2024 represents a significant milestone in the company's history. As India transitions to more sustainable transportation solutions, Maruti Suzuki is well-positioned to capitalize on the growing demand for EVs. By 2026, the company aims to further expand its range of electric vehicles, further cementing its position as a leader in the Indian automotive market.