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Maruti Suzuki eVitaraMaruti Suzuki Indiawhich is slated to unveil its first-ever battery electric vehicle – the eVitara – in September, nevertheless continues to espouse a multi powertrain strategy amid multiple global uncertainties about the electric vehicle (EV) ecosystem. This belief in promoting all powertrains, not just electric, comes amid a reported division within the industry over whether the upcoming CAFE norms should be relaxed for small cars.
Maruti has been asking for relaxation for small cars, given their significant presence in its portfolio, but some other OEMs are believed to have opposed this move.
CAFE norms set carbon di-oxide (CO2) emission limits in grams per kilometre for OEMs’ fleets, pushing them to improve fuel efficiency and adopt cleaner technologies. CAFE-II norms are currently in force but the upcoming CAFE-III and CAFE-IV norms are expected to be significantly stricter.
Apart from the differences of opinion on whether small cars should have different norms than other four wheelers, some OEMs also believe that stricter CAFE norms are, in fact, a way to push for greater electrification across the automobile manufacturing ecosystem.
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And this is what Rahul Bharti, Executive Director (Corporate Affairs), addressed during a call with analysts after Maruti’s results for the June quarter this fiscal.
To a question about supply chain resilience for electric vehicle manufacturing and CAFE norms pushing for greater electrification, Bharti said “This is a challenge. It was known. There are other questions around EVs also, like lithium availability or some other critical minerals’ availability.
Fortunately, the government is seized of the matter and they are taking a realistic view. The ministries are talking to each other. So, there is some level of understanding on this. Therefore, in CAFE norms, a multi powertrain approach or a strategy is much de-risked.”
Bharti’s comments follow what he had told ETAUTO earlier. He had said that while Maruti will hardly sell any pure play gasoline ICE vehicle by 2030-31, this transformation will not be skewed only in favour of Battery EVs.
Maruti plans to offer a bouquet of clean fuel vehicles for the consumer to choose from. Apart from BEVs, there will be strong hybrids, vehicles which operate on flex fuel technology, on compressed natural gas (CNG) and even compressed biogas (CBG). By FY31, Maruti plans to sell each and every car fitted with a carbon reduction technology but only 15-20 per cent of the company’s portfolio will be BEVs. This may be in contrast to many other competitors, who are banking significantly on electric vehicle sales by the turn of the decade.
Bharti said during the call that Maruti is “ambitious” on EVs and “we are ambitious on other clean technologies also. Supply chain resilience (for EVs) is not fully established but industry is working towards it. It may involve some cost and there are also efforts on other fronts, whether some magnets can be made elsewhere, either in India or abroad.”
He was referring to the crippling shortage of rare earth magnets – used in ICE as well as electric vehicles – which has already started impacting production across different OEMs.
CAFE Norms
On being asked about Maruti’s viewpoint on new CAFE norms, Bharti said that the talks on CAFE are being led by the Society of Indian Automotive Manufacturers (SIAM). ”I won’t be able to answer because SIAM is the best spokesperson for that. Having said that, the discussions have been proceeding well between the industry and the government. Both sides understand each other’s position quite well. It is a complex topic, but there have been sufficient discussions and all the complexities are on the table. And it is expected that between one to two months, all of us are hoping that the final regulation will be out so that we have clarity,” he said.
But Maruti Chairman R C Bhargava has been quoted earlier as saying that the proposed CAFE III norms were unfavourable for small cars and instead favour bigger SUVs. Maruti remains the biggest small car OEM even though the share of small cars in its overall portfolio has been declining due to changing buyer preferences.
During the call with analysts, Bharti highlighted that “affordability issues” in the entry segment cars continue to affect the growth of the industry, even as there is increased consumer preference for SUVs and MPVs. In the June quarter of FY26, the share of SUVs increased to over 55 per cent of total sales while that of the hatchback segment continued to shrink.
Clean tech investment
Maruti has earmarked significant investments in clean technologies. Bharti had earlier said that parent company Suzuki Motor Co already has a JV with Toshiba and Denso (TDSG) for making lithium ion cells and batteries in India with an investment of ₹1200 crore.
In addition, Suzuki group has committed ₹10,300 crore investment in manufacturing electric vehicles (EVs) and in creating a local ecosystem for supplies of components. Of this ₹7300 crore will be used for setting up a second lithium-ion cell and battery pack manufacturing plant and ₹3,000 crore in BEV manufacturing, all in Gujarat.
In the end, since the penetration of electric cars is expected to remain low in India for the medium term amid supply challenges, perhaps Maruti’s strategy of offering a bouquet of powertrain options is a sensible one.
