Charging Up the Debate: Maruti Suzuki's Chairman Takes a Balanced Stance on Electric Cars

The electric vehicle (EV) debate has long been a contentious topic within the automotive industry. While some manufacturers sing the praises of EVs, others, like Maruti Suzuki, take a more balanced approach.

Speaking at the 50th National Management Convention organized by the All India Management Association, Mr. R C Bhargava, Chairman of Maruti Suzuki, expressed the view that electric cars won't truly be environmentally friendly until India derives at least 50% of its electricity from renewable sources. He emphasized that, in India, electric cars might have a larger carbon footprint than hybrids due to the fact that 75% of the country's electricity is generated from coal.

Mr. Bhargava argued that hybrids are currently a cleaner alternative to electric cars, and even compressed natural gas (CNG) can be a cleaner fuel option compared to petrol. He suggested that India should consider exploring alternatives such as hydrogen, ethanol, and fuel cell vehicles over electric cars.

Personally, I share his perspective, as electric cars, despite having zero direct emissions, may still contribute to pollution indirectly. Furthermore, there are concerns about whether India's infrastructure is ready to fully support electric cars. Hybrids, especially pure hybrids, offer efficiency, similar running costs to EVs, and the convenience of quick refueling compared to long charging times. CNG, while clean, has become expensive over time, and refueling queues are common, with a limited driving range.

Maruti Suzuki's attempts to introduce an electrified Wagon R faced challenges due to the high cost of the model. However, they are now focused on launching more commercially viable electric cars. Even with six electric models, these vehicles are expected to comprise only 15-20% of Maruti's sales, reflecting the current low adoption rate of electric cars in India, which accounts for just 2% of total car sales.

Mr. Bhargava also acknowledged that producing diesel cars has become cost-prohibitive due to stringent regulations and Corporate Average Fuel Efficiency (CAFE) compliance. Regarding the Bharat NCAP safety standards, he raised concerns about the effectiveness of reducing accidents and fatalities as long as obtaining a driving license remains relatively easy through the current testing system.

Maruti Suzuki recently unveiled the EVX electric SUV concept at the 2023 Auto Expo, with the production version expected to hit the market in 2024. This upcoming EV will compete with models like the Tata Nexon EV and the upcoming Hyundai Creta EV. Maruti Suzuki currently offers the Grand Vitara with some success, along with its cousin, the Urban Cruiser Hyryder, which feature mild-hybrid systems, highlighting their commitment to hybrid technology.