Tough to price e-cars affordably: Maruti

NEW DELHI: Maruti Suzuki, which accounts for one out of every two cars sold in the country, has said that it will be challenging and “very difficult” to price electric cars affordably and launch them at levels of Rs 5-6 lakh — a price-point that is the heart of the Indian car market.

The statement by the country’s biggest carmaker comes at a time when the government is pushing for electric vehicle technology very aggressively, and has asked companies to either work towards e-cars by 2030, or “be ready to be bulldozed”.

Maruti Suzuki MD & CEO

Kenichi Ayukawa

said that making affordable electric cars remains one of the biggest challenges for auto companies, especially as batteries for the vehicles are “very expensive” and there is no public charging infrastructure. “Affordability is a concern, and we can’t seem to find answers,” Ayukawa told TOI here. “There are still cost concerns… We need to find solutions.”Asked whether it would look at a price range of Rs 5-6 lakh, which is where Maruti currently dominates with its products, he said, “It’s very difficult… practically impossible, I think so.”

Maruti’s Japanese parent Suzuki has signed an MoU with compatriot

Toyota

for introducing electric vehicles in India by 2020, and is also constructing a plant for lithium-ion batteries in Gujarat. They would also look at development of allied technologies as Suzuki will produce electric vehicles for use by Maruti while also supplying “some” to Toyota.

Ayukawa said that Maruti is currently studying whether it should electrify models from its existing range, or if all-new cars need to be introduced. “It is still not clear. We have started planning just now.” However, he added that the effort of Maruti will always be to manufacture cars that are affordable and are placed at the heart of the market. “Affordability has been our philosophy from the very beginning. It has not changed over the past 35 years.”

The company’s chairman R C Bhargava has also said that affordability is one of the key factors that will decide the adoption and popularity of electric cars in the market.



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