Maruti’s EV Gamble When the King of Petrol Cars Enters a New Game
For decades, Maruti Suzuki mastered one formula in India: build small, efficient petrol cars using a powerful local supplier network. Nearly 95% of components were sourced locally, and most suppliers operated within 100 km of Maruti’s factories.
This tight ecosystem helped Maruti control costs better than anyone else. The result? Industry-leading margins and dominance in India’s passenger vehicle market.
But electric vehicles are rewriting the rules.
Unlike petrol cars with thousands of mechanical components, EVs are simpler machines. No engine, no gearbox, no exhaust. Instead, the battery becomes the heart of the car, often accounting for 30–40% of total cost.
That’s where Maruti faces its biggest challenge.
Its new EV, the eVitara, starts at ₹10.99 lakh without the battery. With the battery included, the price jumps to around ₹16 lakh. The company introduced a Battery-as-a-Service (BaaS) model where customers pay for battery usage per kilometre.
This lowers the entry price for buyers — but it also exposes the real cost structure of EVs.
Unlike rivals, Maruti currently imports finished batteries from BYD, which limits its ability to control costs. Meanwhile competitors like Tata Motors and Mahindra are assembling battery packs locally, capturing more value from the EV supply chain.
So Maruti’s strategy is clear: price aggressively, gain EV market share first, and optimize costs later.
Maruti Suzuki