With a ‘fresher’ drive to the EV road, Maruti looks to do what it knows best
The first EV model, eVitara, is expected to be commercially launched in the January-March quarter and bookings are scheduled to open soon.
Before that, the nation’s largest automaker is trying to address key concerns that executives say are keeping EV penetration low. According to a senior executive, Maruti is working to address three main concerns: lack of charging infrastructure, inadequately trained service technicians and low resale value through targeted strategies.
In an interview with MintPartho Banerjee, senior manager, marketing and sales, said it does not make sense to launch the product in a market that does not meet the infrastructure and resale concerns of buyers.
Banerjee said the company has installed 2,000 charging stations with a target of 1 lakh by 2030, announced an assured buyback scheme to address concerns over resale value, and provided training to more than 150,000 service providers across the country.
“We have been in this market for 40 years, but we are just getting started. We also act like new companies. This is how we acted forty years ago,” Banerjee said, adding that the company will first take customers for a test drive before taking a reservation.
Late entry into a crowded market
Maruti Suzuki was founded in 1981 and launched its first car, the Maruti 800, two years later. The establishment of India’s automobile manufacturing ecosystem is largely attributed to Maruti’s increased sales of affordable cars in the country. As of end-November, the company had around 40% market share in the Indian passenger vehicle market.
Maruti’s first electric product, the e Vitara, will enter a mid-size SUV market crowded with EV offerings like Hyundai India’s Creta EV, Vinfast’s VF6 and VF7, Tata Motors’ Curvv EV and Mahindra’s BE 6. While its rivals have already increased sales of its electric vehicles, Maruti is yet to officially start sales.
At the start of the financial year in April, Maruti had set a target of producing 70,000 initial electric vehicles for FY26, which was largely devoted to exports. The company is confident that it will achieve its goal.
Ecosystem bets
In August, the company began exporting its first electric vehicle to more than 100 markets; Initial shipments were targeted to European countries in an attempt to make better profits on these high-cost vehicles, allowing the company to slow down in the domestic market where EV sales are strong.
According to the data of the Federation of Automobile Dealers Association (Fada), electric vehicle sales in the country increased by 83 percent in the April-November period, reaching approximately 120 thousand sales.
New EV launches in the country in the last six months included Tata Motors’ Harrier EV, Mahindra’s XEV 9s, Kia Carens Clavis EV and Vinfast, and Tesla’s entry with its models.
Maruti faces the prospect of intense competition in the segment but is confident that its investments in accelerating the ecosystem will give it an edge in the market.
“By doing the campaigns we did, bringing all the apps under one umbrella, giving the customer confidence in a fast charger, then showcasing that the product range is really good… It addresses a lot of concerns,” Banerjee said, adding that service personnel should also be ready before the product is launched.
“The same thing happened with CNG when we started. Penetration increased and people saw confidence that gas was available, but then they will do it…it will take time,” the company said.
On December 2, Maruti’s managing director and managing director Hisashi Takeuchi had announced that the company had set up more than 2,000 dedicated charging points in 1,100 cities as part of its two-pronged strategy to alleviate driving range anxiety among consumers when it starts selling the battery-powered EV.
When waiting pays off
Some analysts suggest that the late entry into the Indian market may not be a major disadvantage for the automaker as the country’s electric vehicle penetration is still below 5%.
“The penetration of EV is still quite low. So while Tata & M&M have a head start, I cannot say Maruti is a latecomer, especially considering their network strength,” said Subhabrata Sengupta, partner at Avalon Consulting. “In a way, a later launch could give them clarity on pricing.”
Maruti will sell its first electric vehicle model through its premium dealership network Nexa. When asked if the EV market will shift towards premium models only, given the high cost of producing vehicles, Banerjee said the market leader cannot target only a particular segment.
“What we say is that we believe that as a market leader we should be present in all form factors and provide all technologies. We are technologically agnostic. We are not saying you should only buy this particular technology today,” Banerjee said.
