- 11 Sep 2024
- ICICI Securities
MARUTI TO CREATE ENABLING EV ECOSYSTEM
News: According to media sources, Maruti Suzuki is preparing to launch its first electric vehicle (EV), accompanied by a comprehensive ecosystem designed to address common concerns related to EV ownership, such as charging infrastructure and battery management. It will introduce its first EV, a mid-size SUV model called eVX, at the Bharat mobility show slated for January 2025. The vehicle will have a range of 500 kms. Separately, it also expects that by 2030, 25% of its car sales will come from hybrid vehicles, outpacing electric cars, which are projected to contribute about 15% of total passenger vehicle sales.
Views: Currently, Maruti Suzuki offers Hybrid vehicles( Grand Vitara & Invicto) which are doing well in arears where tax reliefs have been announced as it attracts a higher GST rate of (43%) than of EVs (5%). With EV launch Maruti will expand its product mix and compete in the area where Tata motors leads the segment. On the hybrids it shared that there is strong demand for hybrid cars, particularly in states offering incentives for such vehicles, as they provide a combination of good mileage and eliminate range anxiety. Currently, hybrids account for 16% of the sales of models like the Grand Vitara and Invicto.
Impact: Positive