MSI Chairman Advocates for Policy Framework Promoting Clean Tech to Replace ICE Cars
MSI Chairman Advocates for Policy Framework Promoting Clean Tech to Replace ICE Cars
Maruti Suzuki India (MSI) is eagerly awaiting a comprehensive policy framework that promotes various clean technologies to replace petrol and diesel cars. According to MSI Chairman RC Bhargava, the company is committed to reducing carbon emissions and dependence on imported fuel through a diversified approach to eco-friendly technologies.
In his address to shareholders in the company's annual report for 2023-24, Bhargava emphasized the need for stable policies and a predictable work environment to foster industrial growth. He expressed optimism that the third term of Prime Minister Narendra Modi's government will continue to prioritize infrastructure development, fiscal prudence, inflation control, and manufacturing competitiveness.
Addressing concerns about MSI's perceived slow entry into the electric vehicle (EV) market, Bhargava explained the company's strategy to adopt a diversified approach to achieving national environmental objectives. Rather than relying solely on EVs, MSI aims to explore various technologies, acknowledging the government's acceptance of this multifaceted strategy. Bhargava cited states like Uttar Pradesh, which have already begun implementing policies to promote alternative technologies.
Bhargava underscored the critical national objective for the car industry: reducing carbon and greenhouse gas emissions and minimizing reliance on imported fuel. To align with these goals, Maruti Suzuki plans to offer a range of cars with different technologies and price points. The company will introduce electric cars in the coming months, with expansion contingent on infrastructure development and cost reduction through localization and technological advancements.
Highlighting the environmental impact of pure petrol and diesel cars, Bhargava advocated for the promotion of strong hybrid technology, compressed natural gas (CNG), ethanol, and biogas-powered vehicles. He noted that hybrid cars can improve fuel efficiency by 35-45% and reduce emissions by 25-35%. While CNG cars are not as clean as hybrids, they are still preferable to petrol or diesel vehicles and benefit from expanding CNG infrastructure, with MSI expecting to sell around 6 lakh CNG cars this year.
Bhargava also pointed to India's significant potential for biogas production from agricultural, animal, and human waste. He described biogas as a completely renewable, carbon-negative fuel that offers considerable environmental benefits. MSI has initiated biogas production trials at its Manesar plant and looks forward to government policies that will accelerate the development of this sustainable fuel.
MSI is also working on engine modifications to accommodate higher ethanol blends, currently using petrol blended with 20% ethanol, with the technology to support higher blends available.
Amid these technological advancements, Bhargava reassured shareholders that MSI remains committed to producing affordable vehicles for a broad consumer base. Recognizing the economic conditions of many citizens, MSI continues to prioritize the manufacture of low-cost small cars, even as it expands its portfolio to include more SUVs and higher-priced models.
Looking ahead, Bhargava highlighted the importance of technology development in MSI's strategy. Suzuki's dedicated R&D company will focus on new technologies, while MSI strengthens its capabilities in conventional technologies with an engineering workforce now numbering about 2,500.
MSI Managing Director and CEO H Takeuchi expressed confidence in India's rapid development and aspiration to become a developed nation by 2047. He emphasized his mission to deliver the "joy of mobility" to as many Indians as possible, aligning with the country's growth trajectory. In FY 2023-24, India's passenger vehicle market achieved a milestone with over 40 lakh units sold, maintaining its position as the third-largest market globally. However, car ownership remains low, with only 3% of the population owning vehicles, underscoring the vast growth potential.
Maruti Suzuki's commitment to clean technology, affordability, and technological advancement positions the company to play a pivotal role in transforming India's automotive landscape. By promoting a range of eco-friendly technologies and maintaining a focus on accessible mobility, MSI aims to meet the diverse needs of Indian consumers and contribute to national environmental goals.
In conclusion, MSI Chairman RC Bhargava's call for a policy framework to promote all clean technologies reflects the company's commitment to a diversified approach in achieving environmental and economic objectives. By embracing a range of eco-friendly technologies, Maruti Suzuki aims to reduce carbon emissions, decrease dependence on imported fuel, and provide affordable mobility options for a broad segment of the population. As India continues to develop, MSI's strategy aligns with national priorities, ensuring the company remains competitive while meeting societal needs.
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