Maruti Chairman Advocates Hydrogen and Ethanol Cars Over EVs for India
By Aquib Nawab
India's electricity relies heavily on coal, posing eco-concerns. Bhargava advocates hybrid, CNG, ethanol, & hydrogen vehicles amid renewable energy transition.
Environmental Concerns and EVs
Maruti Suzuki's EV Plans
Maruti Suzuki's EV efforts include the Wagon R electric. Yet, high production costs challenge market viability. Shifting focus to larger, cost-effective models now.
Bhargava estimates that electric cars will only constitute a relatively small portion of Maruti's total sales, given the current market conditions. This estimation is influenced by the challenges faced by the industry.
EV Market Share
Shifting Market Trends
There is a noticeable shift in consumer preferences from small hatchbacks to SUVs in the Indian car market. This shift has had a significant impact on the overall growth rate, particularly in the small car segment.
Currently, there are no semiconductor shortage constraints in India. Bhargava emphasizes the dependence on imported electronics and the importance of domestic component manufacturing.
Automotive Supply Chain
Bhargava links India's manufacturing slowdown to state bureaucracy and entrepreneur focus on personal wealth. Urges mindset change & state support for 12% growth.
Bhargava stresses India's road safety issues, calls for mandatory vehicle fitness certs, and emphasizes safety for two-wheelers and pedestrians via stricter driving tests.
Road Safety Concerns
Bhargava expects tech and regulation changes to cap car industry growth at 5% for a decade. Remains hopeful for India's auto sector, barring economic surprises.