Maruti Suzuki Aims to Localize EV Components in Coming Years

Maruti Suzuki is gearing up to manufacture electric vehicle (EV) components, including batteries, in India over the next few years. This move comes as the company prepares to introduce its first EV, the e-Vitara, to the Indian market next year. The automaker also intends to build consumer confidence in its EVs by improving charging infrastructure, after-sales service, and resale value.

According to Partho Banerjee, Senior Executive Officer (Marketing & Sales) at Maruti Suzuki India, the company is committed to localizing battery production and other essential EV parts to strengthen the country's EV ecosystem. While batteries are currently imported, Maruti Suzuki has a phased localization plan in place.

Banerjee emphasized that wider adoption of EVs in India hinges on consumers feeling confident about using them as their primary vehicle. He noted that negative perceptions surrounding driving range, stemming from earlier EV models, have made potential buyers hesitant. Currently, many EV owners use their vehicles as a secondary mode of transportation due to the limited public charging infrastructure.

Maruti Suzuki intends to have five EV models in its portfolio by fiscal year 2030. The company anticipates that by then, the Indian auto industry will reach 5.5 to 6 million vehicles, with EVs accounting for 13-15% of the market. That said, the reality is a bit more complicated. Banerjee mentioned that these projections might need reassessment following the implementation of GST 2.0, as initial reports suggest a potential slowdown in EV adoption.

He identified driving range, insufficient charging infrastructure, after-sales service challenges, and resale value concerns as significant obstacles to EV adoption in India. Maruti Suzuki is addressing these concerns by establishing 1,500 EV-enabled workshops across 1,100 cities and setting up 2,000 charging points. The company also plans to offer assured buyback and subscription schemes to boost resale value.

Banerjee stressed the importance of a robust EV ecosystem for the industry's growth, urging OEMs to prioritize product quality, after-sales service, and ecosystem development to instill confidence in consumers. Maruti Suzuki has already begun exporting the e-Vitara, shipping 10,000 units to 26 markets.

The company aims to become a leader in the EV segment by introducing multiple electric models across various body styles and establishing a comprehensive charging infrastructure. Maruti Suzuki plans to install approximately 100,000 charging stations by 2030 in collaboration with its dealer partners and charging point operators.