Maruti Suzuki India is poised to replace petrol and diesel cars with eco-friendly vehicles, pending a supportive policy framework, stated Chairman RC Bhargava in the company’s 2023-24 annual report, as reported by PTI. Bhargava stressed on the necessity for policy stability and a predictable work environment to foster industrial growth.
Bhargava expressed optimism that Prime Minister Narendra Modi’s administration, in its third term, will persist in enhancing infrastructure, maintaining fiscal prudence, controlling inflation, implementing competitive manufacturing reforms, and trusting the private sector.
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Addressing shareholder concerns about the company’s perceived delay in manufacturing electric vehicles, Bhargava explained, “We chose a diversified approach to national objectives, avoiding an all-eggs-in-one-basket strategy.” He acknowledged the government's acceptance of varied technologies for India’s diverse needs, as per PTI.
Citing states like Uttar Pradesh, which have already advanced in this direction, Bhargava reiterated the company's anticipation for a comprehensive policy framework that promotes all clean technologies to replace petrol and diesel cars.
A primary goal for the car industry, Bhargava stressed, is to reduce carbon emissions and dependency on imported fuel. Consequently, Maruti Suzuki aims to offer cars with diverse technologies at various price points, aligned with India’s economic and social environment and resource availability.
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The company plans to introduce electric cars within the next few months, with rapid adoption hinging on infrastructure development and cost reduction, primarily through localized production and advanced technology. Bhargava highlighted the need to minimize pure petrol and diesel car usage, advocating for strong hybrid technology, CNG, ethanol, and biogas alternatives.
“Pure petrol and diesel cars are the worst offenders in terms of emissions and fuel consumption,” Bhargava said, noting that hybrid cars can improve fuel efficiency by 35-45% and reduce emissions by 25-35%. While CNG cars are not as clean as hybrids, they are better than petrol or diesel cars and avoid oil use, supported by the government’s priority on CNG infrastructure.
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India’s significant potential for biogas from agricultural, animal, and human waste was also highlighted. Bhargava noted that biogas is renewable, import-free, and carbon-negative. Maruti Suzuki has initiated biogas production trials at its Manesar plant and anticipates favorable government policies for its rapid development.
Additionally, Maruti Suzuki is working on modifying engines to use petrol blended with 20% ethanol, with potential for higher blends. Bhargava reassured shareholders that despite industry changes, Maruti Suzuki remains committed to addressing the needs of consumers unable to afford expensive cars.
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