The electric vehicle space in India is indeed witnessing a rising graph. Over the years, the number of automobile companies, be it startups, indigenous firms, or international brands; which are selling electric cars and two-wheelers in the domestic market has increased. While other well-established companies, like Tata Motors and Mahindra, are already betting big on electric vehicles, Maruti Suzuki doesn’t plan to enter the EV space in the near future.
Maruti Suzuki’s Chairman RC Bhargava has expressed scepticism over switching to electric vehicles. Speaking at the 61st annual convention of the Society of Indian Automobile Manufacturers (SIAM), he said that the country’s largest carmaker will not be entering the EV space in the short term.
Bhargava’s concern is that entry-level car buyers don’t have the financial heft required to purchase cars that comply with European standards. Also, electric vehicles are not targeted at people who fall in the low-income brackets and, thus, should not be the first in line to be incentivised.
Bhargava credits the Indian auto sector’s growth to affordable entry-level cars. He also says that the sales volume of the electric vehicles in the Indian market remains minimal and had no impact on Maruti Suzuki’s market share. He also expressed concern about the high levels of tax on automobiles claiming it to be a major factor in hampering the industry’s revival.
“The future is electric”, you must have heard this line in the recent past. There is no doubt that electric vehicles are picking up pace in the market. In fact, some of the big international brands are even looking to go fully electric in the coming few years. However, for the Indian market, do high-cost EVs actually make sense when a relatively eco-friendly resource like CNG is readily available at an affordable price?