A case study on dilemma of launching electric vehicles by Maruti Suzuki

Pages: 1688-1689
Subhendu Bhattacharya (Amity Global Business School, Mumbai, Maharashtra)

India’s largest carmaker Maruti Suzuki has taken initiative to commercially launch electric vehicle WagonR by 2020. This electric vehicle is new innovative drive from India’s leading automobile company to keep up with environmental protection operation. Maruti Suzuki has geared up its fleet testing exercise for electric vehicles. It has made a mission to bring electric vehicles in India by 2020. But the situation is far from easy. The main hurdles are high cost structure for manufacturing of electric vehicle and deficiency of charging infrastructure. Inadequate parking, vehicle affordability and consumer acceptability are other concerns along with making the car suitable for Indian roads. Maruti has spearheaded revolutionary transformation in automobile since it rolled out Maruti 800 in 1983. The government support acts as a catalyst in manufacturing and sell of electric vehicles in India. Government is releasing tenders to build up charging station, providing subsidy to vehicle buyer through FAME India Initiative and reducing import duty on parts and components to boost up electric vehicle production. Private buyers are upset about FAME II scheme of government as it favours those who will put their electric car to commercial use only. So, it will gain traction once infrastructure is conducive and fleet operators start using it. Maruti Suzuki is committed to launch WagonR Electric next year despite multiple challenges.