In a bold move to dominate the small car electric vehicle (EV) market, Maruti Suzuki has announced plans to launch an all-new electric hatchback by the fiscal year 2026-27. The upcoming model, based on the eWX concept showcased by Suzuki Motor Corporation at the 2023 Japan Mobility Show, is set to challenge Tata Motors' Tiago EV, a current leader in the segment known for attracting first-time EV buyers.
Maruti Suzuki is investing over Rs 10,000 crore for the localization of EVs, intending to sell half a million EVs annually by the fiscal year 2030-31. Learning from the Wagon R EV project's challenges, the new electric hatchback will feature a ground-up electric vehicle architecture named K-EV. The platform, codenamed YY8, is derived from the Toyota 40PL global platform, offering optimal efficiency and performance.
Unlike the earlier Wagon R EV project, the K-EV will not be based on an internal combustion engine (ICE) platform. Instead, it will be developed on a skateboard platform, ensuring versatility to spawn various compact EVs. Maruti Suzuki's Chief Technology Officer, CV Raman, emphasizes that all future Maruti Suzuki EVs will be 'born-electric,' not ICE-derived.
To meet cost targets, high localisation, possibly even at the battery cell level, is crucial for the K-EV. Suzuki Motor's strategy involves multiple platforms, with its first electric SUV nearing market roll-out and production scheduled for Q4 2024. This diversification allows Maruti Suzuki to offer a wide range of EV options at different price points, aiming to boost adoption.
Maruti Suzuki aims to contend with Tata Motors in the entry-level EV segment, where Tata Motors currently sells around 10,000 to 15,000 Tiago EVs annually. The highly localised Maruti Suzuki hatchback is expected to invigorate the entry-level EV market upon its release, contributing to Suzuki Motor's larger plan to introduce six electric vehicles by the end of the decade.
The Indian government has offered support for the EV sector, with a 5 percent GST for electric vehicles and benefits under the production-linked incentive scheme. Falling battery prices and increasing EV volumes are expected to narrow the price gap between electric cars and internal combustion engine vehicles, making them more accessible to consumers.
Maruti Suzuki's strategic entry into the EV space, coupled with the evolving dynamics and government support, positions the automaker to capitalize on the growing demand for electric vehicles in India.