Maruti Suzuki is anticipating a policy framework that promotes all clean technologies. The automaker sees 60% of its annual sales coming from ICEs that use fuels such as CNG, biogas, flex fuel, and ethanol-blended fuel, 25% from hybrids and the remaining 15% from EVs.
04 Aug 2024 | 4305 Views | By Kiran Murali and Ketan Thakkar
Offering the widest range of products at different price points with an array of technologies is Maruti Suzuki’s mantra for staying ahead and meeting future regulations in the country.
India's largest car maker, which boasts the biggest accessible portfolio in the country, is set to expand its model range ...
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Offering the widest range of products at different price points with an array of technologies is Maruti Suzuki’s mantra for staying ahead and meeting future regulations in the country.
India's largest car maker, which boasts the biggest accessible portfolio in the country, is set to expand its model range from 17 to 28, powered by over half a dozen different engine options.
"Considering our economic and social environment and the availability of resources within the country, the best strategy would be to offer to customers cars with different technologies and at different price levels," Maruti Suzuki Chairman RC Bhargava told shareholders in its annual report.
Unlike many competitors, Maruti Suzuki has not yet introduced an electric vehicle. The company is betting on multiple powertrain strategies to continue its leadership position in the Indian passenger car market.
Bhargava noted that the company will introduce an electric car in the next few months. However, the rapid expansion of electric cars depends on the pace of infrastructure development and their cost reduction, which has to come from localisation of production and better technology.
Regarding the delay in rolling out electric vehicles, Bhargava said the company has decided to adopt a more diversified approach to meeting national objectives and does not want to put "all our eggs in one basket."
"It is also clear that pure petrol and diesel cars are the worst in terms of carbon and greenhouse gas emissions and fuel consumption. Therefore, while electric car use increases, customers should be encouraged to buy cars using strong hybrid technology, CNG or ethanol and biogas," he said.
By the end of this decade, the automaker sees 60% of its annual sales coming from fuel-efficient internal combustion engines using fuels such as CNG, biogas, flex fuel, and ethanol-blended fuel. The remaining 25% is projected to come from vehicles powered by hybrid technology, while battery-electric vehicles will account for 15%.
"We were the first to start producing CNG cars because they were more economical than petrol cars and environmentally cleaner. They suited users with limited incomes and met environmental objectives," Bhargava said.
Maruti Suzuki has a portfolio of 17 models across pure-ICE, CNG, and hybrid powertrains. It plans to launch half a dozen electric vehicle models by the end of the decade, one model every year.
Electric vehicle adoption has been slowing recently. Maruti Suzuki has said it is working on an affordable hybrid solution for compact cars and will seriously consider more expensive plug-in hybrid technology for the future.
Maruti Suzuki could offer a complete range of hybrid solutions, from Suzuki's affordable series hybrid to Toyota's strong parallel hybrid to a plug-in hybrid.
Recently, the state of Uttar Pradesh reduced the tax on hybrid vehicles. Bhargava noted that the company is awaiting a policy framework for promoting all technologies to replace pure petrol and diesel cars.
Last year, Maruti Suzuki showcased the Wagon R powered by bio-CNG that can run on methane gas. "We are also working on modifying car engines, and presently, cars can use petrol blended with 20% ethanol. Technology exists to enable cars to use higher amounts of ethanol," he added.
Meanwhile, in recent years, automakers have also increased their focus on the SUV segment amid consumer demand shifting towards larger cars. Barring SUVs, Maruti Suzuki is the leader in most mass car segments. It leads in every segment of the passenger vehicle market, including hatchbacks, sedans, utility vehicles, and vans.
Leadership in the SUV segment is key to Maruti Suzuki’s target of achieving a 50% market share in India’s car market. To regain lost share, the company has been proactively bridging gaps in its portfolio. In the coming years, the company plans to launch an entry SUV and the top-of-the-line C-segment SUV, to garner a larger share in the growing SUV market.
Read More: Won't ignore buyers who can't afford expensive cars, says Maruti Suzuki Chairman RC Bhargava