CHENNAI: Maruti Suzuki (MSIL) will not enter electric vehicle (EV) space in the short term, chairman RC Bhargava told shareholders at the company’s 40th annual general meeting. He added that the company will start selling EVs only when there is reasonable volume and it won’t have to incur losses.
“We will introduce electric vehicles, but we will do that at an appropriate time when it will be feasible to sell these electric vehicles in reasonable numbers and when it will be feasible to sell them without making a loss on the whole operation,” said Bhargava.
Bhargava’s statement comes at a time when automakers such as Tata Motors and Hyundai are eyeing to expand their EV offerings in India. Similarly, Mahindra & Mahindra have stated its aggressive EV plans for the domestic market and MG Motor would be launching its second EV in India next year. According to Bhargava, sales volume in this space is minimal and it has had no impact on the market share of Maruti Suzuki.
According to reports that emerged last month, MSIL’s parent company Suzuki will enter EV market by 2025, starting with India. Their first vehicle is likely to be priced lower than Rs 10 lakh. Chip shortage temporary On the current semiconductor shortage faced by the automobile industry, Bhargava said that the problem is expected to be over by 2022. He added that Maruti Suzuki hasn’t had a major impact due to it though its production has been hit partly. “The shortage of semiconductors is a temporary problem partly due to Covid-19. Our estimation is that this shortage problem will be over by 2022,” Bhargava said.