Aug 04, 2024 07:22 PM IST
Maruti Suzuki Chairman R.C. Bhargava believes in offering cars with different technologies considering India’s economic and social environment and resources
Maruti Suzuki will introduce EVs in a few months, Chairman R.C. Bhargava wrote in his address to shareholders in the auto giant’s 2023-24 annual report, adding that the automaker is also awaiting a new policy framework that promotes multiple types of clean technologies including CNG, biogas, and ethanol.
“Some states, like UP (Uttar Pradesh), have already taken steps in this direction. We now await a policy framework that would lead to the promotion of all technologies that result in petrol and diesel cars being replaced by cars using other technologies,” he said.
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Bhargava expressed hope that the Prime Minister Narendra Modi-led government will continue focusing on developing infrastructure, maintaining fiscal prudence, controlling inflation, trusting the private sector, and implement reforms to make manufacturing more competitive.
When it came to Maruti Suzuki’s slow adoption of EVs, Bhargava said, “We decided to adopt a more diversified approach to meeting national objectives and did not want to put all our eggs in one basket.”
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Considering the economic and social environment and the availability of resources within India, the best strategy would be to offer to customers cars with different technologies and at different price levels, according to Bhargava. “While electric cars use increases, customers should be encouraged to buy cars using strong hybrid technology, or CNG or ethanol and biogas,” he wrote.
“We will be introducing electric cars in the next few months. The ability to rapidly expand the acceptance of such cars would depend on the pace of infrastructure development and reduction of the cost of electric cars,” Bhargava said. “This has to largely come from localisation of production and better technology.”
What are the advantages of cars with alternate sources of power?
Hybrids improve efficiency by about 35-45% and reduce carbon and greenhouse gas emissions by 25-35%.
CNG cars, though not as clean as hybrids, are better than petrol or diesel cars and also do not use oil, he said, adding that CNG car sales have been rising with the government prioritizing CNG distribution infrastructure. Maruti Suzuki expects to sell about 6 lakh CNG cars this year.
When it comes to Biogas, he said “Biogas is completely renewable, has no import content and is overall, carbon negative. Production of biogas would also lead to important benefits to the environment.”
Bhargava added that Maruti Suzuki has already started trials of biogas production at its Manesar plant and is looking forward to government policies for biogas development.
He also said “we are also working on modifying engines of cars and presently can use petrol blended with 20 per cent ethanol. Technology exists to enable cars to use higher amounts of ethanol.”
Despite all this, Bhargava also stressed that Maruti Suzuki will never forget to address the needs of a large section of consumers who cannot afford expensive cars.