Suzuki believes sudden electrification in Indian car market could leave them flat-footed considering the huge volume Maruti Suzuki produces and sells
Maruti Suzuki has been dominating the Indian car market for quite long time, but as the country is thriving towards electric mobility, the automaker is worried about the impact. As the brand’s parent company Suzuki believes, sudden shift to all-electric mobility could leave the automaker flat-footed in the country considering the fact that it produces and sells such a gigantic number of cars in domestic market.
Maruti Suzuki cars’ practicality, affordability are one of the prime reasons behind the success of the brand in India. While the all-electric cars are priced significantly higher, conventional fuel powered models are available at much lowered pricing. This is due to the high cost of batteries. In this scenario, Maruti Suzuki will be forced to hike the pricing of its cars if shift to electrification happens all of a sudden.
Not only high price of imported batteries for EVs, significantly increased production cost too will affect the pricing of these models. In this scenario, either Maruti Suzuki will have to resort to lower profitability or it will have to deal with sales decline with due to high pricing and both of these are not desirable for the brand.
There are more reasons to be worried for the automaker. While Indian government is pushing it hard to introduce zero emission mobility across the country by 2030, the country doesn’t have necessary infrastructure for the electric vehicles. Adopting all-electric mobility without creating a proper charging infrastructure network across the country will certainly affect the automakers as well as the futuristic green mobility plan as well.
To deal with the problem of higher cost for batteries for electric vehicles, Maruti Suzuki is expected to rely greatly on the Suzuki-Toyota alliance in global level that is promised to help each other with EV technology. Also, Suzuki’s battery plant in India would help the number one carmaker of the country to deal with the upcoming challenges.