Maruti Suzuki's eagerly anticipated electric vehicle (EV), the eVX SUV, has encountered a delay in its launch timeline. Originally slated for production commencement in September 2024, the eVX SUV's debut has been pushed back by a few months due to unforeseen challenges in battery supply and software development.
Addressing Technical Challenges
The delay stems from the brand's efforts to tackle multiple issues related to battery supply chains and software intricacies. These hurdles have significantly impacted the start of production (SOP), resulting in a postponement of at least five months. The eVX SUV is set to be manufactured in India and targeted for export to key markets such as Europe and Japan. However, due to the delay, the international launch plans have also been pushed to the following year.
Implications for Global Operations
This setback is not only a concern for Maruti Suzuki but also for its parent company, Suzuki. The eVX was poised to be Suzuki's entry point into the competitive European EV market. With production now likely to commence in February 2025, the export of the vehicle to Europe and Japan will be deferred from the end of 2024 to the next year. Maruti Suzuki is expected to be a crucial export base for the eVX, with an estimated 75-80 percent of the planned 1.5 lakh units earmarked for overseas markets.
Software Development: A Key Challenge
The delay highlights the complexities of software development in electric vehicles, which is a critical aspect due to the sophisticated nature of electric powertrains and the need for continuous updates and innovations. Maruti Suzuki is committed to entering the EV market with a well-prepared product and distribution strategy. To ensure a glitch-free launch, the company has decided to delay the SOP by a few months.
Maruti Suzuki's EV Roadmap
Despite the hiccup, Maruti Suzuki has a clear vision for its electric vehicle journey. The company has outlined a long-term plan to launch six electric vehicles in India by the financial year 2031, covering various segments from hatchbacks to SUVs. Maruti Suzuki anticipates that electric vehicles will constitute about 15 percent of its total sales by the end of the decade.
Future EV Models and Market Entry Timing
Following the eVX, Maruti Suzuki plans to roll out the YMC MPV and an EV hatchback based on the eWX concept showcased at the Japan Mobility Show in 2023. The company has been critiqued for its delayed entry into the EV market, but it has taken this time to localize parts and gear up for global operations. Maruti Suzuki believes that its entry into the EV space is timed right, coinciding with the projected increase in EV market share to 3-5 percent. This period will also see competitors like Hyundai and Mahindra introducing their EV offerings.
R&D Efforts and Model Launches
Maruti Suzuki's R&D department is busier than ever, working on a vast product portfolio of over 24 models. As a result, some of its internal combustion engine (ICE) models might also experience delays of three to six months. In the past two years, the company has launched six to eight new models and is gearing up for the launch of the all-new Swift and Dzire in the upcoming quarters.