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Maruti Suzuki cautious on EVs, Hyundai predicts market growth by FY27
Economic Times, 3 Apr '25Headlines 4 Apr 2025
- Nation's EV growth to create millions of jobs across key sectors by 2030
- Yazaki expands in country with new Chennai plant
- Kerala, Delhi lead nation's EV transition
- Nation's EV growth faces challenges in infrastructure, affordability
- TNSTC, private operators plan to relocate bus services to Panjapur IBT
- Mile Green accelerates EV future with US$ 50 million investment
Maruti Suzuki, India's largest car manufacturer, has stated that electric vehicles (EVs) will take time to achieve mass adoption, as customers continue to perceive them as secondary vehicles and remain concerned about public charging infrastructure, battery range, and post-sales support.
In contrast, Hyundai, the country's second-largest car manufacturer, expects EV sales to nearly double to 5% of total car sales by FY27, up from an estimated 2.7% in 2024-25.
These developments coincide with ongoing discussions within the central government regarding plans to phase out petrol and diesel vehicles in Delhi-NCR as part of efforts to combat air pollution. However, the recent statements made by industry executives are not directly linked to these deliberations.
Maruti Suzuki has been among the slowest major car manufacturers to introduce EVs, and its scepticism regarding their widespread acceptance remains. "EVs sold today are not primary vehicles but secondary ones. Until concerns regarding range, charging infrastructure, and post-sales support are addressed, buyers will lack confidence. EVs will remain secondary vehicles, and their numbers will not grow rapidly," media sources quoted Partho Banerjee, Senior Executive Officer (Marketing & Sales) at Maruti Suzuki, as saying.
Maruti Suzuki showcased its first EV, the eVitara, in January and plans to launch it later this year. Banerjee emphasised that both the government and manufacturers must collaborate to address customer concerns.
Hyundai, however, remains optimistic. Tarun Garg, Chief Operating Officer at Hyundai India, stated that the growing presence of major brands such as Tata, Mahindra, Hyundai, Kia, and Maruti in the EV segment is gradually changing consumer perceptions. "We believe the share of EVs will reach 3.5% by the end of FY26 and subsequently increase to 5% in the following fiscal year," Garg stated.
Tata Motors continues to lead the Indian EV market, followed by JSW MG. The current year is expected to see a significant increase in EV launches, with manufacturers expanding both their model range and market reach.
Maruti Suzuki's cautious stance on EV adoption aligns with its Japanese parent company, Suzuki, which has revised its electrification strategy for India. Initially planning to introduce six EVs by 2030, the company has now reduced this target to four.
Meanwhile, discussions at the highest levels of the central government are focusing on a phased transition away from petrol and diesel vehicles in Delhi-NCR. According to a report by media sources, one of the key proposals under consideration is to restrict new vehicle registrations to EVs, CNG, or hybrid models while gradually phasing out petrol and diesel vehicles.
Timelines for implementation are still under review, though sources indicate that some restrictions could come into effect within the current financial year. By the end of 2025, Delhi may limit new bus registrations to models running on cleaner fuels. For three-wheeler goods vehicles and light commercial vehicles, the transition could extend into 2026 or 2027.
Commercial taxis are expected to be granted a longer transition period, while privately owned cars and two-wheelers are likely to be among the last segments affected. Restrictions on the registration of new petrol and diesel private vehicles could be introduced between 2030 and 2035.
The implementation of these measures is expected to follow a phased approach, beginning with Delhi and subsequently extending to high-traffic districts such as Gurugram, Gautam Buddh Nagar, and Ghaziabad before being expanded across the wider NCR. Additionally, discussions are underway regarding the potential prohibition of goods vehicles that do not meet BS VI emission standards from entering Delhi, a regulation that could come into force within a year.
Alongside vehicle restrictions, authorities are also focusing on mitigating road dust, a significant contributor to air pollution. Officials have identified approximately 2,000 km of roads in Delhi requiring redevelopment, paving, and greening. Planned measures include the deployment of mechanised sweepers, anti-smog guns, and water sprinklers, with discussions ongoing regarding funding and implementation.