How Maruti Plans To Checkmate Tata Motors, Mahindra, MG Motor in India's Evolving Car Market
India's passenger vehicle market is undergoing a rapid transformation, with electrification at the forefront of this change. Yet, Maruti Suzuki, the nation's leading carmaker, is charting a unique path. While competitors like Tata Motors, Mahindra, and MG Motor accelerate towards an electric-first approach, Maruti is placing its bets on a diversified multi-powertrain strategy.
This approach is not just about embracing battery electric vehicles (BEVs) but also about investing in hybrids, compressed natural gas (CNG), flex-fuel, and biogas options. Maruti's strategy is designed to cater to a broad spectrum of consumer needs rather than focusing solely on electric mobility.
The Multi-Powertrain Chess Game
Maruti's approach is akin to a chess player thinking several moves ahead. The company's debut EV, the eVitara, set for a September 2025 launch, is merely one piece of a larger puzzle. By the 2030-31 fiscal year, Maruti plans to phase out pure petrol engines, with only 15-20% of its lineup being electric.
The remainder will comprise hybrids, CNG-powered vehicles, flex-fuel models, and those utilizing compressed biogas. This strategy starkly contrasts with its rivals' plans. For instance, Tata has committed to achieving 20% EV penetration by FY27 with a ₹35,000 crore investment.
Mahindra is making headlines with its "born electric" range, while MG Motor enjoys a significant share of the electric segment with its Windsor EV. Against this backdrop, Maruti's diversified strategy aims to mitigate risks by leveraging technologies that are both feasible and cost-effective today.
CNG and Hybrid Technology: Maruti’s Strong Suits
Maruti's dominance in the CNG vehicle market is one of its key strengths, with these vehicles accounting for a significant portion of its total sales. The expanding network of CNG stations across India complements Maruti's strategy, offering a clean and proven fuel alternative that circumvents the need for the extensive infrastructure electric vehicles require. This makes CNG vehicles a practical choice for buyers in smaller cities and rural areas.
Hybrid technology forms the second pillar of Maruti's strategy. The Grand Vitara Intelligent Electric Hybrid exemplifies Maruti's expertise in blending internal combustion engines with electric propulsion, enhancing fuel efficiency and reducing emissions without inducing range anxiety. With the potential for hybrids to constitute 25% of Maruti's portfolio by 2030, the company is poised to serve as a bridge between traditional petrol cars and pure EVs.
Tackling CAFÉ 3 Norms
The Corporate Average Fuel Efficiency (CAFE) norms are a significant driver of automakers' strategies, pushing them towards lower fleet emissions. Maruti has been vocal about advocating for equitable rules for small cars under these norms, arguing that they are disproportionately penalized despite their lower emissions per passenger kilometre. This advocacy underscores Maruti's commitment to maintaining its stronghold in the small car segment, even as SUVs gain popularity in the Indian market.
Playing the Long Game
With EV penetration in India currently standing at around 4%, despite notable year-on-year growth, Maruti's multi-powertrain strategy is predicated on the belief that the nation's mobility landscape will continue to be diverse.
By offering a variety of fuel technologies, Maruti is positioning itself for long-term stability rather than immediate dominance in the EV sector. This strategic approach hinges on the maturation of charging infrastructure and battery supply chains. For now, Maruti's game plan is to cater to every potential need of the Indian consumer and let market dynamics dictate the outcome.
To sum it up, Maruti Suzuki's multi-powertrain strategy represents a calculated gamble in a rapidly evolving market. By diversifying its offerings, Maruti aims to remain relevant to all customer segments, hedging against the uncertainties surrounding electric mobility.