Maruti Suzuki is said to join hands with Toyota for the development of the brand’s first full hybrid car
Managing Director of Maruti Suzuki India Limited, Kenichi Ayukawa, expects Central Government to provide tax exemptions for hybrid vehicles in the near future under new schemes and policies. Therefore, the largest automaker in the country is getting ready to localise components such as lithium ion batteries and related elements.
The partnership between Suzuki and Toyota is responsible for building the Li-ion battery plant in Gujarat and it will aid Maruti Suzuki to bring out hybrid and subsequent electric vehicles with high cost efficiency. According to our sources, processes regarding Maruti Suzuki’s first full hybrid car have already underway with anticipation towards tax incentives currently hampered by GST rules.
Kenichi Ayukawa further said that Suzuki is making moves with Toyota to implement “hybrid system nationwide” provided the Government supports with tax benefits. Recently, the Ministry of Road Transport and Highways asked for the reduction in hybrid car GST rates and the Department of Heavy Industries wanted incentives for 10,000 hybrid vehicles under FAME 2.0 scheme.
The second phase of the FAME scheme is expected to make a big impact in the future of hybrid vehicles. With car manufacturers wanting incentives and definitive set of regulations to purse with developing hybrid cars for India, the Government appears to be reacting in their favour, instead of sticking by the long-term goal of promoting just electric mode of transportation with incentives.
Ayukawa stated that Suzuki is learning from Toyota’s advanced hybrid technologies. The relationship with Toyota will be of immense help to Suzuki especially in commercializing battery tech for the masses. Going forward, the Government may offer incentives on lithium-ion battery production under EV policy and reduce tax rates on hybrid vehicles to aid manufacturers before transforming to all-electric vehicles completely.
Maruti Suzuki has begun road testing Wagon R EV prototypes before the launch of the production version in 2020. The facelifted Ciaz and new-gen Ertiga are the first vehicles in the lineup to feature dual-battery setup as well. The brand is expected to rely on hybrid as well as electric vehicle technologies for a sustained future.