Maruti Suzuki to introduce affordable electric hatchback by 2026-27
Maruti Suzuki, India's largest automaker, is gearing up to compete with Tata Motors's Tiago EV. The carmaker is planning to launch a compact electric hatchback by 2026-27 on our shores. The new EV will likely be based on the eWX concept, which was unveiled at the 2023 Japan Mobility Show. This move aims to attract first-time buyers to the EV market and challenge Tata Motors's stronghold in the segment.
Maruti Suzuki will use the all-new K-EV architecture
The company is developing a brand-new EV architecture for compact vehicles, called K-EV. This move comes after learning from the Wagon-R EV project that failed to meet technical and cost targets. Unlike the Wagon-R EV, the K-EV will not be based on an internal combustion engine (ICE) platform. Instead, it will use a skateboard platform for a range of compact EVs. CV Raman, Chief Technology Officer, emphasized that all Maruti Suzuki EVs will be 'born-electric.'
The carmaker is investing heavily in localization
To achieve cost targets for K-EV architecture, Maruti Suzuki is focusing on high levels of localization. The company plans to invest over Rs. 10,000 crore in localizing EVs in India. It has established a battery plant with Denso and Toshiba for its hybrids and partnered with BYD for blade-cell batteries for its upcoming eVX mid-size e-SUV. It aims to launch half a dozen electric vehicles by the end of the decade.
The company aims to challenge Tata Motors
Tata Motors currently sells around 10,000 to 15,000 Tiago.ev units annually. According to Shailesh Chandra, MD of Tata Passenger Electric Mobility, falling battery prices and higher volumes will likely bring electric car prices closer to ICE-powered vehicles. As a latecomer to the EV space, Maruti Suzuki may have timed its entry well to ride the wave, despite the segment facing challenges globally. The company's highly localized hatchback is expected to boost the entry-level EV segment when it hits the market.
