Electric Vehicles May Not Be Viable For Mass Market In India: CV Raman

Deepanshu Taumar

13 May 2021
11:29 AM
1 Min Read

India’s largest carmaker Maruti Suzuki had plans to bring a mass market EV in 2020. However, after rigorous testing and considering the infrastructure development in the country, the company is not confident enough to launch it commercially.


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Despite the aggressive push towards electrification of the fleet by the government with various policies, incentives and GST benefits, Electric Vehicle (EV) technology is still not viable for the mass car market in India because of the cost-conscious customers and other fundamental problems associated with it, said CV Raman, Senior Executive Director (Engineering), Maruti Suzuki India in an exclusive interaction with Mobility Outlook

Highlighting the fundamental issue around the cost of acquisition of electric cars, he said, “We need to make a viable proposition to the customer. Ultimately we need to treat each and every segment differently and look at how we bring electric vehicles in these segments. The price absorption capacity is different for the customer who buys a vehicle for INR 40-50 lakh vis-à-vis a customer purchasing a vehicle for a basic commute at a price of INR 6.5-8 lakh. A hike of INR 5-10 lakh for electric vehicle technology will impact both sets of customers differently.”

He further added that the rise in the cost of the vehicle should also resonate with the range of the vehicle and efficient charging infrastructure.

Out of a total of 2,711,457 units of passenger vehicles sold in FY21, 53% of them fall under the mass car market (PVs sold below INR 10 lakh) category, as per the SIAM Data.

Raman pointed out that the way urban cities are designed and developed in India, it becomes challenging to install home chargers. “A person living on the first floor will have to drop a cable to charge his vehicle or make a point, which may be feasible or not. So a holistic approach on charging infrastructure solutions is needed,” he added. 

According to a study, 60% of cars are parked on roads in India. So where do electric vehicles get charged, Raman questioned.  

India’s largest carmaker Maruti Suzuki had plans to bring a mass-market EV in 2020. However, after rigorous testing and considering the infrastructure development in the country, the company is not confident enough to launch it commercially. 

Raman, nonetheless, reiterated the company’s focus on reducing CO2 and supporting the environment, and said the introduction of mild hybrid and engine start-stop technology has helped save fuel and pollution. 

“We are looking at electrification in a different way altogether. We have introduced technologies such as mild hybrid and engine start-stop. Also, we are working with Suzuki to bring strong hybrids in India,” Raman added. 

Suzuki Motor Corporation plans to develop electric vehicles technology by 2025 and launch its first product in the same year and scale it from 2030.

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