Need framework promoting clean tech that replaces ICE cars: MSI Chairman

Maruti Suzuki India is awaiting a policy framework that promotes all clean technologies resulting in petrol and diesel cars being replaced by vehicles using such eco-friendly technologies, according to its Chairman RC Bhargava.

In his address to shareholders in the company's annual report for 2023-24, he said industrial growth requires stability of policies and a predictable work environment.

He also expressed hope that in the third term, Prime Minister Narendra Modi-led government will continue its emphasis on building infrastructure, maintaining fiscal prudence, keeping inflation under control, implementing reforms that make manufacturing more competitive and trusting the private sector.

"Some believe that your company has been slow to manufacture electric vehicles. We decided to adopt a more diversified approach to meeting national objectives and did not want to put all our eggs in one basket," Bhargava wrote.

 

He further said the government has also accepted that in India there is need to use different technologies.

"Some states, like UP (Uttar Pradesh), have already taken steps in this direction. We now await a policy framework that would lead to the promotion of all technologies that result in petrol and diesel cars being replaced by cars using other technologies," he said.

Bhargava emphasised that a major national objective for the car industry is to reduce carbon and greenhouse emission and the dependence on imported fuel.

In line with this, Maruti Suzuki has decided that considering the economic and social environment and the availability of resources within India, the best strategy would be to offer to customers cars with different technologies and at different price levels.

"We will be introducing electric cars in the next few months. The ability to rapidly expand the acceptance of such cars would depend on the pace of infrastructure development and reduction of the cost of electric cars. This has to largely come from localisation of production and better technology," Bhargava said.

It is also clear that pure petrol and diesel cars are the worst in terms of carbon and greenhouse gas emission and consumption of fuel. Therefore, while electric cars use increases, customers should be encouraged to buy cars using strong hybrid technology, or CNG or ethanol and biogas, he asserted.

"Pure petrol and diesel car use should be minimised," Bhargava said adding, hybrid cars improve fuel efficiency by about 35 per cent to 45 per cent and help reduce the carbon and greenhouse gas emission by 25 per cent to 35 per cent.

CNG cars are not as clean as hybrids but are better than petrol or diesel cars and also do not use oil, he said, adding with the government giving high priority to building infrastructure for CNG distribution, sale of CNG cars has been rising and MSI expects to sell about 6 lakh such cars this year.

On biogas, he said India has a very large potential for developing it from agricultural, animal and human waste.

"Biogas is completely renewable, has no import content and is overall, carbon negative. Production of biogas would also lead to important benefits to the environment," Bhargava said adding, MSI has started work on a trial basis to produce biogas at its Manesar plant and is looking forward to government policies that would result in rapid development of this fuel.

He further said,"We are also working on modifying engines of cars and presently can use petrol blended with 20 per cent ethanol. Technology exists to enable cars to use higher amounts of ethanol."

Bhargava also said amid the evolving situation in the Indian automotive industry, MSI will not forget to address the needs of a large section of consumers who are unable to afford expensive cars.

MSI has always endeavoured to align its strategies and policies with national priorities and societal needs, he said adding,"Our belief has been that the company will benefit most if, while enhancing its competitiveness, the economic and social needs of society are also met to the maximum extent possible."

Thus, Bhargava said,"Our continued efforts to manufacture low-cost small cars has been in recognition of the economic condition of a large majority of citizens and their aspiration to own a comfortable and safe means of transport. Even as we produce more SUVs and higher cost cars to cater to a different market segment, we will never forget the needs of the large numbers who cannot afford expensive cars."

On the road ahead, he said,"As we implement Maruti 3.0 it is evident that technology development would play a critical role in our future. While Suzuki is going ahead with its own R&D Company that will concentrate on the development of new technologies, we are strengthening our own capabilities and would concentrate on the current conventional technologies. Our engineering manpower has now become about 2,500."

In his message, Maruti Suzuki India Managing Director and CEO H Takeuchi said,"India is developing fast and aspires to become a developed nation (Viksit Bharat) by 2047. This ambitious goal presents us with an opportunity and makes me believe that my dream of delivering 'joy of mobility' to as many Indians as possible will become a reality."

In FY 2023-24, India's passenger vehicles market reached an unprecedented milestone, surpassing the highest-ever annual sales of over 40 lakh units.

"Consequently, India sustained its status as the third-largest PV market globally. Having said that, only 3 per cent of Indian people enjoy ownership of cars. My dream, or rather my personal mission, is to deliver the 'joy of mobility' to as many Indians as possible," Takeuchi wrote.