Chairman of Maruti Suzuki has given a statement that the company will not hold back in the electric vehicle segment and will come up with models based on customer preference. R.C. Bhargava said this during company’s 36th annual general meeting (AGM) in the presence of Suzuki Motor Corp. chairman Osamu Suzuki and managing director and chief executive Kenichi Ayukawa, according to media reports.
Considering Maruti Suzuki’s market share in the Indian passenger vehicle segment, which is around 50%, this statement is significant. The government of India is pushing for all electric fleet in the country by 2030, it has launched FAME India – Faster Adoption and Manufacturing of Hybrid and Electric vehicles in India – for this. The Government plans to roll out over 5 million electric and hybrid vehicles in the next three years. The government has also lowered the Goods and Services Tax (GST) on EVs to 12 per cent, while there is minimum GST of 29 per cent on small petrol cars and 43 per cent for hybrid cars. According to a study conducted by the Society of Indian Automobile Manufacturers (SIAM) and the Ministry of Heavy Industry, India has the potential to reach sales of over 7 million electric vehicles by 2020.
Earlier this year Suzuki Motor, the parent company of Maruti Suzuki had announced an investment of Rs 1,200 crore to set up an automotive lithium-ion battery manufacturing unit in India, through a joint venture with Toshiba and Denso. In India, Mahindra & Mahindra (M&M) already produces EVs while Tata Motors, Hyundai, Renault Nissan are working on it and have plans to launch EVs in coming years.