Maruti Chairman Bhargava Warns on Car Affordability- Rolls Out EV‑Ecosystem Bet with e‑Vitara

NEW DELHI, 6th August 2025: R.C. Bhargava, Chairman of Maruti Suzuki India Ltd., has issued a stark warning: India’s car market risks leaving millions of first-time buyers behind as rising costs make basic mobility increasingly unaffordable for the country’s aspiring middle class. With the launch of the e-Vitara and a comprehensive EV-plus-multi-fuel strategy, Maruti aims to prioritise affordability and infrastructure to keep mobility accessible for the masses. “The growth rate of the car industry has become a significant concern,” Bhargava stated in his annual letter to shareholders. Policies must treat cars as drivers of economic growth and job creation. The less affluent segments of the population should also be empowered to purchase safe and comfortable means of transportation.” His remarks, included in Maruti Suzuki’s 44th annual report, express deep concern about the market’s trajectory. Car penetration in India is only 34 per 1,000 people—one of the lowest rates among major economies—yet retail sales in FY24-25 grew by just 3%. In the first quarter of this fiscal year, the market even contracted by 1.3%. Bhargava attributed much of the slowdown to regulatory changes that inadvertently made vehicles unaffordable for mass buyers. “Meeting European standards led to higher production costs. It may not have been realised that these increased costs, combined with unchanged tax rates, would result in many prospective buyers of small cars being unable to afford them,” he explained. An Electric SUV with an Ecosystem While advocating for a policy rethink, Bhargava confirmed Maruti’s long-anticipated entry into the battery-electric segment with the launch of the e-Vitara—a global model aimed at both domestic and export markets. “The company is also planning to introduce two new SUVs this year, one of which is an electric car for both domestic and export markets,” he said. Maruti’s EV rollout extends well beyond the vehicle itself. The company plans to provide home chargers with every e-Vitara, install fast-charging stations every 5–10 kilometres in India’s top 100 high-sales cities, and establish 1,500 EV-ready workshops across 1,000 cities, supported by 24/7 roadside assistance. This “ecosystem approach” addresses one of India’s primary barriers to EV adoption: the lack of charging and service infrastructure. It also sets Maruti apart from its rivals. Tata Motors, which holds over 70% of India’s EV market, has focused mainly on product launches and relies heavily on public charging networks. Hyundai has taken a hybrid-led approach. Maruti’s strategy of bundling a comprehensive support system with every EV aims to reassure first-time and mass-market buyers who might otherwise hesitate to switch to electric. The Multi-Fuel Hedge Bhargava emphasised that Maruti’s decarbonisation efforts will not rely solely on EVs. The company is pursuing a multi-fuel strategy encompassing hybrids, compressed natural gas (CNG), bio-CNG, ethanol blends, and flex-fuel vehicles to balance affordability, infrastructure readiness, and emissions targets. “Our commitment to achieve net-zero emissions is firm,” Bhargava stated. “We expect to make faster progress with a greater focus on cleaner technologies.” Maruti’s target powertrain mix for FY 2030-31 includes 15% battery-electric vehicles, 25% hybrids, 35% CNG (including compressed biogas), and 25% ethanol-blended fuel vehicles. CNG remains a particularly strong growth area. Sales reached a record 619,890 units in FY24-25, with a target of 700,000 units this year. The company has also launched a pilot compressed biogas plant at its Manesar facility, which Bhargava noted would be evaluated for further expansion as part of the government’s “waste-to-wealth” initiative. Scaling Up: At Home and Abroad Maruti’s decarbonisation push aligns with its global ambitions. The company exported over 330,000 vehicles in FY24-25—an increase of 17.5% year-on-year—and Bhargava confirmed that the e-Vitara will also target international markets, including Europe. On the domestic front, Maruti is expanding its manufacturing base. “The first production line in Kharkhoda is fully operational, and the second line will be completed early next financial year,” Bhargava said. He added that plans are in place to further increase production if regulations are favourable. Policy at a Crossroads Bhargava’s comments come at a pivotal moment for India’s auto policy. Government subsidies under the FAME-II program for EVs are decreasing, while incentives for ethanol and CNG infrastructure are increasing. Analysts believe that Maruti’s diverse portfolio positions it well to navigate this shift. However, Bhargava’s message to policymakers is explicit: without affordability, India’s car market cannot achieve its growth or decarbonisation goals. “India requires massive industrialisation as it progresses toward becoming a developed economy,” he wrote. “Such growth cannot be achieved if the masses are unable to afford cars.” Balancing Growth and Green Initiatives For Bhargava, Maruti’s strategy is about enabling mass mobility as well as promoting decarbonisation. By integrating EVs into a broader mobility ecosystem, Maruti aims to ensure that affordable and sustainable transport options are available for all.