Why Maruti Suzuki Still Observing the Race of EV Market from a Distance?

In midst of the war for market attention during the last Auto Expo in Delhi, a few companies
surprised the masses with their latest and smartest car models but some choose to distance
themselves from all this clutter. Maruti Suzuki was one such company, While the rest of the
vehicle manufacturers are in a race to secure there a spot in the Indian Electric vehicle market
Maruti, for the time being, has decided to sit in the gallery and observe the race. The company
not only was reluctant to showcase their electric vehicle variants during the expo but also
announced that it won’t be showcasing any such goodies in the near future as the higher cost
would deter possible buyers.

From another perspective, what Maruti is currently undertaking can be named as a purely
strategic move, as most of their operations are Indian centric, the company might want to wait it
out till the prices of raw materials go to the affordability level so that they can be effectively
passed to the customer. The logic is pretty straightforward; India being an average Indian would
buy an INR 6 Lakh petrol vehicle with the same specifications as an Electric car carrying a price
tag of 9 Lakh.

However Maruti is not completely out of the picture as Maruti WagonR would come up with its
own electric segment as announced by the company officials in 2020, but the car would focus
more on the aggregator market which might cost around the 10 Lakh bracket. This might turn out
to be a disaster considering the fact that the prospective customer would prefer a fossil fuel
variant at half the price. The problems would further multiply considering the behavior of the
Indian customers as most of the purchases are on an EMI basis making the cheaper alternative,
attractive, and pocket friendly.

Now for the billion-dollar question, will Maruti ever enter the arena and battle it out with its all-
time competitors? According to Maruti Chairman R C Bhargava, the company would wait till the
cost of batteries and associated components get reduced by at least 25 percentages to be viable
for the smaller markets. He also added that such an innovative breakthrough would take at least 5
to 8 years and till then Maruti Suzuki would wait around the corner sharpening its Electric
Vehicle R and D infrastructure.