The Maruti senior leadership was quite unequivocal in reiterating that the company is keen to “increase offerings with hybrid option as they are quite positive on hybrids but need to consider sales, volumes and viability.”
Elon Musk of Tesla has stated that several other automakers are pursuing plug-in hybrids instead of EVs, citing pressure on the worldwide EV adoption rate. Maruti has, however, reaffirmed its intention to “pursue hybrid tech comprehensively over the medium-term.” Undoubtedly, the increased GST raises concerns, but people are going to wait and see what the incoming government does.
Only Maruti’s mid-size premium models, the Grand Vitara and Invicto, now come with a hybrid option. However, the automaker is actively contemplating growing its lineup, which does not exclude smaller vehicles. Speaking with analysts following the results, Maruti management emphasised that the “Hybrids are potent and consumer-friendly tech for Indian consumers and want to pursue the tech over the medium term. Initially, the tech favours bigger cars but if volumes kick in with R&D it can be brought to smaller cars too.”
The share of hybrids in the Indian automotive industry is barely 2% at the moment but Maruti Suzuki has its eyes trained on expanding the penetration to not just double-digit but also in the high twenties over the next 4-5 years.
The Chairman of Maruti Suzuki, RC Bhargava says, now is the time to “wait and watch for the new Govt to come to power and see what they plan on GST. If GST is indeed reduced to the 12% levels that Minister Gadkari mentioned it will be a game changer ..so have to watch out for the developments in the second half of the year.”