Maruti considering launching electric hatchback: MD & CEO Hisashi Takeuchi

Customers moving from two-wheelers to cars key to revitalising hatchback growth, says MD & CEO Takeuchi

Maruti Suzuki India (MSIL) is considering launching an electric hatchback car in the country as part of its electric push over the next several years, Managing Director and Chief Executive Officer Hisashi Takeuchi said on Thursday.

Takeuchi told reporters that annual sales of premium hatchbacks in India were expected to surpass 1 million by 2030, up from about 700,000 units currently. Earlier in the day, he launched the new version of Swift with a Z-Series 1.2-litre petrol engine and six airbags as standard fitment, with prices starting at Rs 6.49 lakh (ex-showroom).

The overall sales volume of hatchback and sedan segment fell 11.3 per cent year-on-year (YoY) to 1.7 million units in FY24. However, Takeuchi was optimistic about the future of this segment, noting that it continued to be a high-volume vertical.

 

"We maintain the lead in the hatchback market with a very good market share. While this market is not growing right now, with rising economic growth, more people will start buying hatchbacks. At that time, our high market share will help us a lot," he said. In FY24, MSIL held a 63 per cent volume share in the hatchback and sedan segment.

In 2023, MSIL had said its first electric offering would be a sport utility vehicle (SUV) to be launched in FY24. However, the launch date was subsequently pushed back to FY25. Overall, the company aims to introduce six electric vehicles (EVs) in India by FY30.

According to its internal plan, Maruti plans to have EVs, hybrids, and internal combustion engine (ICE) vehicles to be 15 per cent, 25 per cent, and 60 per cent, respectively, of its total production by FY30.

Takeuchi reiterated that the company has stated its "intention to introduce multiple EVs at various price points".

"The first EV we launch will be of a decent size (SUV type). Therefore, we will consider launching an electric car model in the hatchback segment," he said.

While currently the main growth was coming from the SUV segment, "the hatchback segment is not going away," he noted.

Takeuchi said the pivotal factor in revitalising growth in the hatchback segment would be the influx of customers transitioning from two-wheelers to cars. "These customers are likely to opt for hatchbacks as their initial choice," he said.