Maruti Suzuki, one of India’s largest automakers, is set to introduce its first electric vehicle (EV), the E-Vitara, despite admitting that EV profitability is still a long-term challenge. The company is committed to promoting EV adoption through localization, cost reduction, and high-range battery technology. The E-Vitara, which will be launched under the high-end NEXA brand, will have a range of over 500 kilometers, cutting-edge safety features, and plans to compete on a global scale.
Maruti executives acknowledge that EV margins will not soon catch up to those of internal combustion engine (ICE) vehicles, citing government subsidies as a key factor. The company is leveraging these subsidies, including significant GST reductions and supply-side incentives, to support the development of its EV business. The E-Vitara will compete with other EV models, including the Tata Curvv EV, MG Windsor EV, Mahindra BE 6, and the Hyundai Creta EV.
To address customer concerns about existing EV models, Maruti has analyzed customer complaints and taken action to resolve them while maintaining a high level of customer service. The company is also preparing its dealership and service network to manage the EV transition by training mechanics to work with high-voltage systems and introducing roadside assistance and mobile service solutions.
Maruti’s EV expansion is being driven by a combination of factors, including ongoing discussions about the next phase of Corporate Average Fuel Economy (CAFE) standards and the government’s Production-Linked Incentive (PLI) program. The company is assessing its eligibility for the PLI program to alleviate financial strain as it expands manufacturing.
In other news, Maruti Suzuki India exceeded analysts’ projections with a 16% year-over-year increase in consolidated net profit to Rs 3,727 crore for Q3 FY25. The company’s exports hit record highs in the third quarter, with domestic demand showing mixed trends. Overall, Maruti expects consistent growth in the near future.