India’s largest car manufacturer, scheduled to start selling its first EV this year, is working on a cheaper model that may enter production in 2027 or 2028 if market conditions and demand remain favorable.
16 Jan 2025 | 5334 Views | By Ashutosh Radhey Shyam and Ketan Thakkar
Maruti Suzuki, India’s largest automaker by volume and revenue, is preparing to make an impact in the electric vehicle (EV) market with its upcoming compact passenger EV, internally codenamed ‘Y2V’. Sources say the Y2V is a hatchback EV - the first EV model designed and developed locally to cater to ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
Maruti Suzuki, India’s largest automaker by volume and revenue, is preparing to make an impact in the electric vehicle (EV) market with its upcoming compact passenger EV, internally codenamed ‘Y2V’. Sources say the Y2V is a hatchback EV - the first EV model designed and developed locally to cater to the affordable end of the market, and production is expected to begin in late 2027 or early 2028.
Industry sources reveal that Maruti Suzuki will lead the development of the Y2V model. The company anticipates a five-year production volume of approximately 250,000 units. Unlike earlier EV models such as the ‘YY8,’ which was designed with a 60 kWh battery, the Y2V will feature a 35 kWh battery.
While the Y2V’s development is progressing, the final decision on commercial production will depend on factors such as market demand, economic conditions, and cost-efficiency evaluations. Maruti Suzuki did not respond to a request for comment.
The Y2V is part of Maruti Suzuki’s plan to launch six EVs by FY2031, covering different segments from hatchbacks to SUVs. By the end of the decade, the company expects EVs to account for 15% of its total sales. The first model, an electric version of the Grand Vitara (codenamed ‘YY8’), is scheduled for release in 2025, although it has been delayed by six months. However, the Y2V is positioned to cater specifically to budget-conscious consumers, setting it apart in Maruti Suzuki’s EV lineup.
Mass Market Play
The Y2V project reflects Maruti Suzuki’s strategy to enter the entry-level EV segment. The smaller battery ensures cost efficiency and aligns with the needs of urban Indian consumers, who typically rely on shorter commutes. This approach allows Maruti Suzuki to balance affordability with functionality, factors that influence purchasing decisions in India.
Despite entering the EV segment later than competitors, Maruti Suzuki aims to leverage its position in the internal combustion engine (ICE) market to establish itself in electric mobility. Supported by its parent company, Suzuki Motor Corporation, the Y2V project is a key part of Maruti Suzuki’s EV strategy.
Maruti Suzuki’s focus on affordable EVs could help accelerate EV penetration in the country, which still hovers around 2.5%. The high upfront cost of EVs, combined with concerns about driving range and the limited charging infrastructure, continues to slow adoption. However, Maruti Suzuki aims to address these barriers through economies of scale. By achieving targeted monthly production volumes, the company expects to lower fixed costs per vehicle, reducing the cost of ownership for buyers.
R C Bhargava, the chairman of Maruti Suzuki, recently told Autocar Professional that EVs must be designed specifically to meet the unique needs and conditions of the Indian market for wider adoption, rather than being designed in line with Western consumer standards.
"My views on EVs for India are not necessarily the views of Maruti Suzuki, Toyota, or anybody else. The EV market in India is different from the EV market in Europe and the US. Currently, EVs are being designed to meet the standards that are acceptable to consumers in the US and Europe. Aspiration is different for various reasons. For instance, in America, cars are the most common transport even for intercity traveling, while in India, it is the trains. Another factor is the lack of charging infrastructure for the intercity commute in India. So, the country needs EVs which are essentially designed for intracity use," Bhargava had said.
Maruti Suzuki will try to combine scale, affordability, and reliability, according to sources. By focusing on battery technology, streamlined production, and practical design, the Y2V aims to address India’s EV market challenges. Additionally, the company recognizes the need for supporting infrastructure and may collaborate with partners to expand the EV charging network for smoother adoption.
However, EVs in India face several challenges. Consumer concerns about charging infrastructure, driving range, and vehicle reliability must be addressed. Furthermore, competition in the Indian EV market is increasing, with both domestic and international automakers introducing new models.
As the company prepares for the Y2V’s production launch by 2028, its success could pave the way for broader EV adoption in one of the world’s largest automobile markets. If executed well, the Y2V could redefine Maruti Suzuki’s legacy, establishing its position as a leader in electric mobility.