Maruti Suzuki curbs ambitious EV target as Tesla enters India — aims to launch more SUVs, hybrids – Car News

Maruti Suzuki is developing a seven-seat version of the Grand Vitara which could also benefit from the strong hybrid technology.

Maruti Suzuki has reportedly curbed its ambitious plans involving electric vehicles. While the Japanese auto giant had previously laid out an expansive roadmap for battery electric vehicles (BEV), the growing slowdown in this segment, particularly in Europe has made Suzuki Motor Corporation (SMC) rethink its strategy.

In its revised mid-term management plan (FY2025-FY2030), Maruti plans to regain the 50% market share in India by FY2030. The Indian arm of the Japanese automaker is now looking to introduce more SUV and MPV models in India along with new entry-level products. The company is now planning to launch four EVs instead of the previously planned six models by the end of this decade.

Slowdown in EV sales

This includes its first BEV in the form of e Vitara set for a market launch next month. After breaking cover at EICMA 2024 in Milan, the Maruti e Vitara made its India debut at the Bharat Mobility Global Expo 2025 last month. The scaleback on EV launches coincides with a slowdown in the carmaker’s sales globally and Tesla’s imminent entry in India, with the latter already in process of shipping its first lot of EVs to the country.

Maruti Suzuki eVitara

In a strategy briefing in Tokyo on Thursday, Toshihiro Suzuki, SMC said, “India is Suzuki’s most important market where we are putting the most effort. The sales situation of BEVs is not favourable, particularly in Europe. This shows that new technologies cannot grow without customer acceptance”. He further added that Suzuki is working on a mix of technologies including hybrids and bio gas.

Decline in small car sales

Suzuki also highlighted a shift in buyer preferences in India has brought a steep decline in the sales of small cars in the recent briefing. Small cars have been the primary breadwinner for Maruti but over the last few years a rise in the popularity of subcompact, compact, and  mid-size SUVs has had a negative effect on the small car segment. 

Maruti’s share of India’s passenger vehicles market is down to 41 percent from a recent peak of about 51% by March 2020. It had set a market share target of 50 percent by March 2026 which has now been revised by March 2031. Suzuki now expects to sell 2.5 million cars in India by March 2031, down from the initial target of 3 million units per year, set in October 2023.

Suzuki is also looking to expand its production capacity in the country. The company now plans to beef up its line-up of SUVs in India and expand manufacturing capacity there to 4 million units a year “at appropriate time” from about 2 million. The company had earlier planned to scale up to 4 million units by March 2031.

Maruti Suzuki plans for India

Despite the scaleback, Suzuki assured that India will remain the centre for all major action. Maruti is set to receive 60% of a planned investment of 2 trillion yen (approx. Rs 1.15 lakh crore) by the end of this decade. 

Maruti Suzuki Grand Vitara Dominion Edition

Maruti Suzuki is already in the process of revamping its lineup. Besides EVs, the carmaker is also looking to expand its range of hybrid vehicles. Recent reports indicate that Maruti is developing its own strong hybrid technology for its small car segment which could benefit models like Baleno and Swift in the coming years. The company currently offers two strong hybrid models: Grand Vitara and Invicto, both employing Toyota’s technology.

With inputs from Reuters

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