Maruti Suzuki does not anticipate electric vehicles (EVs) achieving profitability on par with internal combustion engine (ICE) models anytime soon, a company executive said, as India’s top automaker continues to prioritize traditional fuel-powered cars.
“For a long time, it’s not going to happen,” Rahul Bharti, Chief Investor Relations Officer, said during the company’s Q3 FY2025 earnings call when asked about the profitability of EVs compared to ICE vehicles. Bharti emphasized that EVs remain significantly less profitable, which is why the Indian government provides extensive support through tax incentives and subsidies. India imposes a Goods and Services Tax (GST) of up to 50% on ICE vehicles but only 5% on EVs. “There are so many subsidies at different levels—on the demand side and supply side,” Bharti added.
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Maruti Suzuki faces additional challenges in localizing EV production, given the absence of a deep supply chain comparable to China’s. The company plans to source battery packs for its upcoming e Vitara from China’s BYD, though Bharti said localization will be explored when feasible. According to local reports, while some rival automakers import only battery cells, Maruti Suzuki will import entire battery packs.
See also: Maruti Suzuki Plans Extensive EV Charging Network Ahead of First Electric Vehicle Launch
Despite its dominant market position in ICE vehicles, Maruti Suzuki may struggle to price its EVs as aggressively as its gasoline models, where it has traditionally undercut competitors. The company is instead banking on strong reliability and after-sales service to boost EV sales. It plans to establish fast-charging stations every five to ten kilometers in 100 cities across India and equip 1,500 workshops to provide service and charging support for EV customers. These workshops will be spread across more than 1,000 cities, with additional on-demand charging and service support for stranded vehicles.
Maruti Suzuki is expected to launch the e Vitara in India in March, with exports to Europe and Japan beginning in the second quarter. The automaker aims to introduce five more EV models by 2030 as it gradually expands its electrification strategy.