Maruti Suzuki India is strategically charting a roadmap to localize electric vehicle (EV) components within the next few years, aiming to strengthen the EV ecosystem in the country. This initiative aligns with the company's plan to launch its first electric vehicle, the e-Vitara, in the domestic market next year.

Localization Plans

Maruti Suzuki plans to localize battery production and other critical EV components in a phased manner. Currently, the company imports batteries, but it has concrete plans for domestic production in the coming years. This localization effort is intended to instill confidence in buyers and support the overall growth of the EV ecosystem. C.V. Raman, CTO of Maruti Suzuki India, has stated that the company is aiming for high levels of localization, including the use of India-made cells.

EV Product Portfolio and Market Strategy

By fiscal year 2030, Maruti Suzuki aims to have five EV models in its product portfolio. The company anticipates that by then, the Indian auto industry will reach a size of 5.5 to 6 million vehicles, with EV penetration accounting for approximately 13-15% of the market. However, these projections may be reassessed due to the implementation of GST 2.0, which could impact EV penetration rates. Maruti Suzuki is targeting 15% of its overall sales from EVs by 2030-31.

Challenges and Solutions

Maruti Suzuki acknowledges several challenges in EV adoption in India, including range anxiety, inadequate charging infrastructure, and concerns about after-sales service and resale value. To address these concerns, the company is adopting a two-pronged strategy: offering vehicles with excellent driving range and building a strong EV ecosystem to ensure customer convenience and peace of mind.

Building the EV Ecosystem

Maruti Suzuki is investing significantly in establishing a comprehensive EV ecosystem. This includes setting up approximately 100,000 charging stations by 2030 in partnership with dealer partners and charging point operators. The company also plans to establish 1,500 EV-focused service centers across the country, along with roadside assistance services. Furthermore, Maruti Suzuki has already set up over 2,000 exclusive charging points across 1,100 cities. Maruti Suzuki is investing ₹250 crore to build charging points and a consumer application to enhance the EV ownership experience. The company intends to have a Maruti Suzuki charging station every 5-10 km in the top 100 cities.

Manufacturing and Exports

Maruti Suzuki is expanding its production capacity to 4 million units by 2030, with a focus on increasing local parts production to make EVs more cost-effective for Indian buyers. The company has invested ₹7,000 crore in production facilities, including a new plant in Kharkhoda, Haryana. Maruti Suzuki has already begun exporting the e-Vitara, with 10,000 units shipped to 26 markets. The company accounts for 47% of all passenger car exports from India and intends to increase exports further with the addition of the e-Vitara. The e-Vitara will also be rebadged as a Toyota for global markets, as part of the Toyota-Suzuki alliance.

Partnerships and Collaborations

Suzuki Motor Corporation has entered into an agreement with the Gujarat government to invest around INR 10,440 crore for local production of battery electric vehicles and batteries. Maruti Suzuki is also engaging in strategic collaborations with companies like Tata Gotion, TDS Lithium-ion Battery Gujarat (TDSG), FinDreams Battery, and ELIIY Power to secure a stable and sustainable battery supply chain. TDSG, a joint venture of Suzuki, Toshiba, and Denso, has achieved electrode-level localization for lithium-ion battery manufacturing.

Vision for the Future

Maruti Suzuki aims to lead the electric mobility segment in India. The company's "e For Me" vision represents its commitment to creating an ecosystem that makes the transition to electric mobility seamless for Indian customers. Maruti Suzuki is balancing its EV strategy with a multi-fuel approach, including CNG, CBG, and hybrid vehicles. By FY31, the company projects that CNG/CBG vehicles will contribute 35% of sales, while ICE and hybrid models will each account for 25%. BEVs are expected to make up approximately 15% of the sales mix.