 "RC Bhargava")
Maruti Suzuki's Chairman, RC Bhargava, believes that Maruti Suzuki India will likely begin mass production of its much-awaited electric vehicles (EVs) for the Indian market only in FY26.
Bhargava, in an interview with CNBC-TV18 on April 30, discussed MSIL's EV plans and noted that the company will not offer much in FY25.
"The plan is to start production towards the end of this financial year and mass production follows a little bit after the start of production," he said.
Furthermore, he added that the bulk of the first lot of electric car production will be exported to Europe, and the domestic market will receive electric cars in numbers from Maruti only after April 2025.
However, Bhargava cautioned that a continued decline in global electric car sales could reduce the overall automotive market demand, potentially impacting material prices due to decreased demand for various materials. He also highlighted that lower EV sales in China are a critical factor that needs close monitoring.
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Earlier in January 2024, at the Vibrant Gujarat Summit, MSIL executive director Rahul Bharti informed that the company is expecting to export lithium-ion battery cells and modules worth around Rs 750 crore this fiscal year.
Maruti Suzuki India has allocated Rs 10,000 crore for capital expenditure on EVs for new product launches and capacity expansion initiatives.
Talking about the increasing surge in SUV sales, Bhargava remarked that within the higher price brackets, sedans are progressively losing ground to SUVs, a trend, he said, is expected to continue for some time. "Amongst those who buy cars in the more expensive brackets, the sedans fundamentally are losing ground to the SUVs and I don't see this trend changing," he told the media outlet.
He expressed optimism about potential margin gains if the Japanese Yen weakens against the US dollar but emphasised the ongoing need for cost reduction efforts within the company.
Maruti Suzuki reported its fourth-quarter results last week. The company reported a standalone net profit of Rs 3,877.8 crore for Q4 FY24, a 47.8 per cent increase year-on-year from Rs 2,623.6 crore reported during the same period last year. Sequentially, net profit went up 23.89 per cent from Rs 3,130 crore in Q3.
