In India, Maruti is known for launching the best budget segment cars, but at present, when companies like MG, TATA, and Citroen have already launched their entry-level electric cars, why is Maruti out of the race?
Many people are searching for answers and continually asking on Facebook, Twitter, LinkedIn when Maruti will launch its first electric car in India. So, we have some inside news on why Maruti is behind in the electric car launch race and when its first electric car will be launched.
Reasons for the delay:
1. Poor Infrastructure
Firstly, Maruti feels that the infrastructure for electric cars is not completely ready or is progressing at a slow pace. This could cause serious problems for EV car buyers who live in areas such as the mountain ranges in the north of India or regions with heavy rainfall like the east or south-west.
The non-availability of charging stations or their non-functioning, even when available, are some of the reasons preventing Maruti from launching electric cars in the Indian car market.
2. High Upfront Cost
Maruti is known for launching budget-friendly cars in India under the budget of ₹5 lakh, ₹7 lakh, ₹10 lakh, or ₹15 lakh. This is the company that listens to middle-class families and launches cars as per their needs.
However, in the case of electric cars, due to the high upfront cost, it is not possible for Maruti to launch an affordable EV car under budget ₹5-7 lakh. This is the biggest concern, and that’s why the company hasn’t stepped into launching an EV car under ₹10 lakh, as in this price bracket, nobody will be interested in buying an entry-level car.
3. Unclear Government Stance on EV Policy
The policy of the Indian government regarding electric cars is another reason for the delay. The government has not yet fully planned how the infrastructure will be improved. There is no notification released yet on what the RTO charges would be after FAME III or how much subsidy will be provided to EV car buyers.
Furthermore, the announcement of the new EV policy, where it has been mentioned that foreign car manufacturers can invest ₹4000-5000 crore and sell cars with an 85% discount on customs duty, has also added to the uncertainty.
As the policies change every few months, car manufacturers like Maruti feel insecure and cannot plan better. Hence their strategy backfires and result in delay!
4. Range and High Waiting Time to Charge
The main concern of EV buyers, even for those ready to buy a car for their home city, is range anxiety and the car’s charging time. While a normal petrol car takes 2-5 minutes for refueling, an electric car takes around 30 minutes to 3 hours at the charging stations (depending on the type of charger used).
This is quite debatable because in the fast-paced world, nobody would like to wait even for a second, so how can they wait for such a long time? In an emergency, it would be difficult and frustrating.
5. Supply Chain Disruptions
Supply chain disruptions are another factor that has delayed the launch of Maruti’s first electric car. As we know, Maruti is known for the best service on time, even in village areas. But in the case of electric cars, where many components are outsourced like battery packs, software development, and semiconductor microchips, it would be difficult for Maruti to provide the best service on time.
This could tarnish Maruti’s brand image, which is known for excellent service all over India, and hence the launch of an EV car has been delayed.
6. Consumer Perception
Last but not least, consumer perception is another factor. For now, many potential car buyers are not interested because they think that EVs are not safe, there would be range issues, and in case the battery level drops below 10% or gets zero, they would have to pay again to EV car charging providers who offer portable car charging services.
So, after paying such a high upfront cost, who would be interested in paying more?Additionally, they are also worried about the car’s battery, which costs 40% of the entire car’s price, and after 5-8 years, this will be another issue and will cost lakhs. For some Indian customers who come from the middle class, it is a matter of concern that how will the money for replacing the battery of the car be managed after 5-8 years.
So, these are some common reasons why Maruti delayed the launch of electric cars in India.
Though the company had confirmed the news of an EV car launch in 2023, but now in 2024 during the eVX concept showcase it has been announced that Maruti will launch its first electric car in late 2025 through Nexa , and after that, a series of electric cars will be launched.
In the next 12-15 months, significant improvements are expected in EV infrastructure , and this would be the best time for Maruti Suzuki to launch its first electric vehicle in India in a truly budget-friendly option. This would be a game-changing moment and then the real competition will begin with existing players.
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