It is recently confirmed that Maruti Suzuki will be ready with its first electric car for India by next year. The country's largest carmaker has been already working on the Maruti Suzuki WagonR Electric, which was first showcased last year at the inaugural MOVE Global Mobility Summit in Delhi. The company told ET that despite the current set of challenges facing electric vehicles in India, such as high prices and lack of proper infrastructure, including charging stations, it is assessing the feasibility of the launch of a small electric car in 2020.
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Maruti Suzuki, Chairman, RC Bhargava said that even though the carmaker will be ready with an EV next year, its launch will be contingent on buyers' readiness to pay more for an electric car. He added, "The WagonR Electric is being tested and will be ready next yea. But what the company can produce and sell will depend on the customer’s willingness to buy the vehicle given the limitations of cost and charging space."
It is to be noted that even though it is currently testing about 50 units of the electric Maruti Suzuki WagonR, the company insiste the car's economic viability will play a crucial role in the direction it eventually takes in the context of launching electric cars in India. Kenichi Ayukawa, managing director, Maruti Suzuki, offered some insight, saying that under the current set of relevant regulations, the electric model of even a small car is expected to cost as much as ₹12 lakh. Just so you know, the new Maruti WagonR petrol model's price ranges between ₹4.2 lakh - ₹5.7 lakh (ex-showroom, Delhi). So, we understand why Maruti is still "studying" the commercial launch of its EVs.
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It is to be noted that the government levies only 12 per cent tax on electric vehicles, which is significantly lower than the 28 per cent tax levied on ICE (internal combustion engines) vehicles. But it still doesn't offer any incentives on the purchase of electric vehicles by private buyers under the FAME II (Faster Adoption and Manufacturing of Electric Vehicles) scheme.