Suzuki Scales Back EV Lineup For India; Now Plans 4 BEVs by 2030

As Suzuki Motor Corp calls for a rethink of its India strategy amid declining market share, it has announced scaled back EV launch plans for the country. 

The Japanese company’s latest ‘Mid-term Management Plan’ for FY30 reveals a revised target of four battery electric vehicle (BEV) models to be deployed in India, down from the six BEVs outlined in its previous growth strategy announced in 2023.

A similar revision has also been made to Suzuki Motor's European BEV plans. The company, which previously aimed for five BEV models in Europe, now intends to offer four models.

Lower Volumes

Separately, the company slashed its outlook for overall volumes in India by 2030 by around 15%, while maintaining the projected share of electric vehicles in its overall sales at 15%. This implies a cut of 15% in its EV sales target as well, for FY30.

The company has cut its long-term volume outlook for India to 2.54 million units by FY30 from the previous 3 million. With electric vehicles still expected to comprise 15% of the mix, this translates to estimated sales of 381,000 electric cars in FY31, down from the earlier projection of 450,000.

Suzuki Motor has been a little late to the electric vehicle party in India, compared to players like Tata Motors and Mahindra. Early mover advantage helped Tata Motors become the largest electric carmaker in India over the last couple of years.

However, Maruti Suzuki, which recently unveiled its first battery electric vehicle in India and plans to start deliveries in a few months, has said that it is aiming to be the largest electric car maker in India in the first year itself.

Globally, several automakers are scaling down their electrification targets amid a slowdown in demand due to high prices and insufficient charging infrastructure, as well as increased competition from cheaper Chinese rivals.

Meanwhile, in India, the competition in the electric vehicle market is expected to pick up significantly with all major OEMs entering with their mass-market models and focusing on improving the charging infrastructure.

Unlike many other OEMs, Suzuki Motor's strategy in India has been focused on a multi-fuel approach towards decarbonization. The strategy includes models across multiple fuel types—battery electric, hybrid, CNG and flex-fuel—tailored to each region's specific needs.

The largest contributor to Suzuki's powertrain mix in India by FY31 is expected to be CNG models, including compressed biogas, with a share of 35%, according to management plan. This reflects the robust uptake of CNG cars in the cost-conscious Indian market.

Traditional internal combustion engines and hybrid vehicles are each expected to contribute 25% to the powertrain mix.

Meanwhile, Suzuki Motor is positioning India as the hub of its electric vehicles.

“First, we will export this vehicle (BEVs) to Europe, then Japan. We would like to leverage India's scale and export to the world…These BEVs represent global models and India will be the production hub for these vehicles,” Suzuki Motor President Toshihiro Suzuki said recently.

India is already one of Suzuki’s largest production bases for internal combustion engine-based cars, and a key node for exporting to markets such as the Middle East and Africa.