Suzuki working on affordable hybrids, confirmed by the chairperson
New Delhi: Amid slowing adoption of electric vehicles, Maruti Suzuki continues to explore different alternatives to move towards carbon neutrality. Speaking to the media post FY-24 earnings, the top management stated that HQ Suzuki is working on an affordable hybrid solution for the compact cars and it will seriously consider the more expensive plug-in hybrid technology for the future.
Affordable hybrid system for small cars
R C Bhargava, chairman of Maruti Suzuki, highlighted the challenge posed by the high cost of Toyota’s hybrid technology, resulting in elevated vehicle prices compounded by a GST rate of 43 percent.
He elaborated on ongoing efforts within Suzuki Japan to develop more cost-effective hybrid technology, specifically tailored for smaller cars. Bhargava emphasized that aligning such advancements with a lower GST rate could potentially lead to small cars offering significantly improved fuel economy at more affordable price points. While refraining from providing specific timelines for the introduction of these affordable hybrids, Bhargava underscored the importance of GST rates and the efficiency of Suzuki Japan engineers in developing robust technology that meets Maruti Suzuki’s objectives.
Plug-in hybrids under consideration
Maruti Suzuki is contemplating the expansion of its portfolio into higher-priced mid-size SUVs, with potential exploration of plug-in hybrid technology in the future. According to Hishahi Takeuchi, MD of Maruti Suzuki, while there are no immediate plans to introduce plug-in hybrid technology in India, it is being seriously considered as an intriguing proposition. This strategic move would enable Maruti Suzuki to offer a comprehensive range of hybrid solutions, including affordable series hybrid (currently under development by Suzuki), the existing strong parallel-hybrid from Toyota, and potentially a plug-in hybrid option pending a favorable study outcome.
The decision to pursue affordable hybrid technology coincides with expressed interest from senior government officials in potentially reducing taxes or levies for hybrid vehicles in India. Maruti Suzuki’s long-term vision, termed 3.0, targets a 25 percent penetration of hybrids, equating to sales of over 7.5 lakh to 1 million hybrid cars by FY-31. While currently, hybrids are offered only in its mid-size premium vehicles like the Grand Vitara and Invicto, Maruti Suzuki anticipates significant volume growth starting from FY-26.
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