The company says a small Rs. 5 lakhs petrol car could cost up to Rs. 12 lakhs when electrified.
Maruti Suzuki is undoubtedly India’s biggest car manufacturer when it comes to numbers. The car giant has now raised some questions about the feasibility of electric cars. The company says that Rs. 5 lakhs worth of a small petrol car would cost around Rs. 12 lakhs in its electric version. Additionally, the company says that the lack of charging infrastructure in the country is another reason for the slow transition from fuel to electricity.
A company official said that the government wants the automotive industry to swiftly move towards electrification of vehicles. However, there is a series of challenges in this, the first being the affordability of the vehicles. Similar to upgrading diesel engines to meet the upcoming norms, vehicle electrification for small cars would take the vehicle beyond the reach of a small car owner.
With the present regulatory scheme and incentives that the government is offering, a small petrol car worth Rs. 5 lakhs would cost around Rs. 12 lakhs when electrified. The GST slab on electric vehicles is at 12 percent which is lower than the petrol powered cars which pay a 28 percent GST. However, under the FAME II incentive scheme, the government is not offering any subsidy to the private electric vehicle owners, with only taxis and shared mobility platforms availing the benefits.
The company also points out the fact of charging infrastructure in the country. Electric vehicles will only gain popularity when there is an assurance of the charging infrastructure. Many people who do not park their vehicles at home will not be able to charge electric vehicles which will need a dedicated setup.
Maruti Suzuki and Toyota have already joined hands and are setting up a factory in Gujarat for manufacturing lithium-ion batteries. However, the company will decide if clean mobility in the future will come from electric powered vehicles or hydrogen-powered vehicles. The company also looks forward to studying the chances of EVs and hydrogen technology and have an approach accordingly.
Small Electric Cars Cost
– Maruti says small electric cars can cost up to 12 lakhs
– The company is currently studying electric mobility related issues
– Maruti could also use hydrogen power for vehicles in the future