According to Maruti Suzuki’s Chairman, RC Bhargava, it is anticipated that Maruti Suzuki India will commence large-scale production of its eagerly anticipated electric vehicles (EVs) for the Indian market around FY26. Bhargava shared during an interview with CNBC-TV18 on April 30 that MSIL’s EV offerings in FY25 are expected to be limited.
“The plan is to start production towards the end of this financial year and mass production follows a little bit after the start of production,” he said.
Moreover, he indicated that the majority of the initial batch of electric car manufacturing will be geared towards export to Europe, with the domestic market expected to receive Maruti’s electric cars in substantial quantities only post-April 2025.
Nevertheless, Bhargava warned about the potential repercussions of a sustained decline in global electric car sales, which could lead to a decrease in overall automotive market demand and subsequent impact on material prices due to reduced demand for various materials. He also emphasized the importance of closely monitoring the decline in EV sales in China, considering it as a significant factor.
Earlier in January 2024, at the Vibrant Gujarat Summit, MSIL executive director Rahul Bharti informed that the company is expecting to export lithium-ion battery cells and modules worth around Rs 750 crore this fiscal year.
Maruti Suzuki India has allocated Rs 10,000 crore for capital expenditure on EVs for new product launches and capacity expansion initiatives.
Talking about the increasing surge in SUV sales, Bhargava remarked that within the higher price brackets, sedans are progressively losing ground to SUVs, a trend, he said, is expected to continue for some time. “Amongst those who buy cars in the more expensive brackets, the sedans fundamentally are losing ground to the SUVs and I don’t see this trend changing,” he told the media outlet.
He expressed optimism about potential margin gains if the Japanese Yen weakens against the US dollar but emphasised the ongoing need for cost reduction efforts within the company.
Maruti Suzuki reported its fourth-quarter results last week. The company reported a standalone net profit of Rs 3,877.8 crore for Q4 FY24, a 47.8 per cent increase year-on-year from Rs 2,623.6 crore reported during the same period last year. Sequentially, net profit went up 23.89 per cent from Rs 3,130 crore in Q3.
