Maruti Suzuki gears up for Affordable Hybrids in small cars
Despite slow electric vehicle sales in India, Maruti Suzuki isn’t giving up on eco-friendly cars. The company announced plans to develop a budget-friendly hybrid system specifically designed for their compact car models. Additionally, they’re keeping an eye on plug-in hybrid technology for potential future implementation. (This version emphasizes both the focus on compact cars and the consideration of plug-in hybrids).
Maruti Suzuki is developing a cheaper hybrid system for their small cars. This is because, according to chairman RC Bhargava, Toyota’s hybrid tech is expensive, driving up car prices. High taxes (43% GST) on hybrids further complicate things.
Maruti Suzuki’s parent company, Suzuki Japan, is working hard to make hybrid technology cheaper for small cars. This would improve fuel efficiency significantly and make hybrids a more affordable option for Indian customers. If the government also lowers the Goods and Services Tax (GST) on hybrids, we could see many more fuel-efficient small cars on the road.
In an earlier scoop, Autocar India revealed that Maruti Suzuki is developing a new, affordable hybrid technology for popular models like the Fronx, Baleno, Swift, and even a small MPV.
The launch of these affordable hybrids hinges on two key factors, according to Bhargava. First, a potential reduction in the Goods and Services Tax (GST) would make them more attractive to consumers. Second, the pace of development by Suzuki Japan’s engineers in creating a reliable and effective hybrid system will determine the timeline for their introduction.
While Maruti Suzuki prioritizes affordable series hybrids for their compact cars, they’re also exploring plug-in hybrids for their growing mid-size SUV range. According to Hishahi Takeuchi, Managing Director, plug-in hybrids are a “very interesting proposition” and are under serious consideration for the future. This could potentially lead to a comprehensive hybrid lineup – affordable series hybrids, the existing Toyota-based parallel hybrids, and future plug-in hybrids – catering to a wider range of customers and budgets.
Also read : Maruti Suzuki gears up for Affordable Hybrids in small cars
Maruti Suzuki’s Hybrid Ambitions Align with Potential Government Incentives: The development of affordable hybrids aligns perfectly with recent statements from senior Indian government officials who’ve expressed interest in tax breaks or reduced cess for such vehicles. This move could significantly boost hybrid adoption. As part of its long-term vision (3.0), Maruti Suzuki aims for hybrids to make up 25% of its sales, translating to 7.5 lakh to 1 million hybrid cars sold by FY-31. Currently, hybrids are limited to their premium mid-size SUVs, but with affordable options coming soon, sales are expected to surge from FY-26 onwards.
