How is GST 2.0 affecting electric vehicle prices in India?

GST 2.0 has made electric vehicles relatively more expensive compared to internal combustion engine vehicles due to tax adjustments.

What is Maruti Suzuki's strategy for EV batteries in India?

Maruti Suzuki plans to localize battery production and other critical EV components in India over the next few years.

Will Battery as a Service (BaaS) boost EV adoption in India?

BaaS and assured buyback programs are being introduced to reduce upfront costs and address consumer concerns about battery degradation.

Home / Business and Economy / EV Price Hike? GST 2.0 Alters India's Electric Car Market

EV Price Hike? GST 2.0 Alters India's Electric Car Market

15 Dec

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Summary

Maruti Suzuki plans to localize EV battery production in India.
GST 2.0 changes have increased the relative cost of EVs.
Battery-as-a-Service and buyback schemes aim to boost EV confidence.

EV Price Hike? GST 2.0 Alters India's Electric Car Market

Maruti Suzuki India is strategically planning to localize battery production and other key components for electric vehicles (EVs) in the coming years. This move is intended to bolster the EV ecosystem within India. Currently, the carmaker imports batteries but aims for phased localization over the next few years, as the company does not yet meet the domestic value addition requirements for government incentives.

Partho Banerjee, Maruti Suzuki's Senior Executive Officer, emphasized that EV adoption hinges on consumer confidence in electric cars as primary household vehicles. To address this, Maruti Suzuki plans to offer Battery as a Service (BaaS) and subscription models for its upcoming eVitara, alongside an assured buyback program. These offerings aim to alleviate concerns regarding battery degradation, which accounts for a significant portion of an EV's cost.