Maruti Suzuki focuses on EVs; seeks policies on clean fuel generation

Maruti Suzuki will introduce electric vehicles (EVs) and focus on vehicles running on renewable fuels in a few months, Chairman RC Bhargava announced in the company’s 2023-24 annual report. He added that the automaker is also anticipating a new policy framework promoting various clean technologies, including CNG, biogas, and ethanol.

The Maruti Chairman said that some states, like Uttar Pradesh, have already taken steps in this direction. “We now await a policy framework that would promote all technologies leading to the replacement of petrol and diesel cars with alternatives,” Bhargava stated.

He expressed optimism that the government, led by Prime Minister Narendra Modi, will continue to focus on infrastructure development, fiscal prudence, inflation control, and private sector trust, alongside implementing reforms to enhance manufacturing competitiveness.

Regarding Maruti Suzuki’s cautious approach to EV adoption, Bhargava explained, “We chose a diversified strategy to meet national objectives, avoiding reliance on a single solution.”

Considering India’s economic and social environment and resource availability, Bhargava believes the best strategy is to offer customers cars with various technologies at different price levels. He wrote in the report that while electric car usage increases, customers should be encouraged to buy cars using strong hybrid technology, or CNG, ethanol, and biogas.

“We will be introducing electric cars in the next few months. The rapid expansion of EV acceptance depends on infrastructure development and reducing electric car costs, primarily through local production and advanced technology,” Bhargava said.

He noted that hybrids improve efficiency by about 35-45% and reduce carbon and greenhouse gas emissions by 25-35%. CNG cars, although not as clean as hybrids, are better than petrol or diesel cars and do not use oil. He highlighted that CNG car sales have been rising, supported by government prioritization of CNG distribution infrastructure, and Maruti Suzuki expects to sell about 600,000 CNG cars this year.

On biogas, Bhargava said that it is completely renewable, has no import content, and is overall carbon negative. Its production also brings significant environmental benefits. He mentioned that Maruti Suzuki has begun biogas production trials at its Manesar plant and is looking forward to supportive government policies.

Additionally, Bhargava stated that Maruti is working on modifying car engines to use petrol blended with 20% ethanol, with technology available to enable higher ethanol usage.