Shares of Maruti Suzuki India, India's largest automaker, surged 5% in early trade today, reaching ₹12,654 per share, following the Uttar Pradesh government's decision to waive registration fees on hybrid cars. Maruti Suzuki has a strong market share in this segment.
In an effort to promote green mobility, the state government announced a 100% registration fee waiver on strong hybrid electric vehicles (HEVs) and plug-in hybrid electric vehicles (PHEVs), according to recent media reports.
HEVs and PHEVs both use an internal combustion engine alongside an electric motor. The primary difference between the two is that PHEVs have a larger battery that requires charging from an external power source.
Estimates suggest that the registration waiver could reduce the on-road price of hybrid cars by up to ₹4 lakh. Maruti Suzuki is expected to benefit significantly, as the company offers hybrid features in many of its models.
Beyond electric vehicles, Indian car manufacturers are also adopting various carbon reduction technologies, such as hybrids, CNG, and biofuels (ethanol, bio-gas). These initiatives aim to maximise decarbonisation efforts and enhance India’s energy security.
The company introduced one of the world’s best strong hybrid-electric technologies with the Grand Vitara in FY23. It strengthened its product lineup, particularly in the SUV segment, with the launch of the Grand Vitara and Brezza.
On the EV front, Maruti Suzuki will start producing battery electric vehicles (BEVs) in 2024. The mid-SUV model will be sold in both the domestic market and export markets, such as Japan and Europe. This upmarket EV is bigger than the Grand Vitara and boasts a range of 550 km with a 60 kWh battery.
By 2030–31, the company plans to launch six EVs. By FY 2025–26, it will introduce a flex-fuel vehicle capable of running on an ethanol blend ranging from 20% to 85% with gasoline.
According to Suzuki’s growth strategy for its operations in India, by FY 2030–31, EVs are expected to contribute 15% of the sales volume, hybrids 25%, and CNG, biofuels, and internal combustion engines 60%.
Maruti Suzuki is also committed to reducing carbon emissions in vehicle dispatches. In a recent exchange filing, the company announced that it surpassed a milestone of 2 million cumulative vehicle dispatches using railways in 2023–24.
The increased use of rail transport over road transport for dispatching vehicles to dealerships has helped avoid over 6,700 MT of CO2 emissions in the past nine years, saving more than 204,522 truck trips and over 227 million liters of fuel.
The Indian automobile industry continues to see an increasing preference for SUVs. Although the hatchback segment is growing at a slower pace than SUVs, it still commands significant volume and remains relevant in the Indian market.
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