Should Maruti Suzuki invest in

Electric Cars?

Group No : 8
Shivam Rasraj(MBA07239), Rias Hassan RT(MBA07249),
Gyan Prakash(MBA07219), Divyansh Shukla(MBA07207),
Ankit Kumar(MBA07197), P Sridhar Prasad(MBA07229)
E V in India
Mahindra E-20 & E-Verito
EV is less than 1 %
Mission 2030 & benefits

Maruti transition to EV
Click Here

Huge investment in the sunrise sector

With collabration
 Pollution Control and Environmental Sustainability

Air pollution crisis-1.2M death per year

Govt. Plan to Phase
out Fossil fuel cars Oil import Bill
Almost Double the Previous Fiscal Year

Movement towards E-cars

Huge investment in
conventional cars Energy Efficient
manufacturing and oil refineries Import independance

Forced to lower spending on some Key Areas

Cascading Inflationary Impact

Increase in Current Deficit
Why is Maruti reluctant to immediately forge ahead
in the e-car segment? Are they committing a
strategic mistake in doing so?

Target segment
Economies of scale
Competitors
Customer expectations
If Maruti Decides to enter the E.V. market, what should be the
mode of entry? What would be an appropriate time?

70-75% of 115k units cars sold are sub 10 Lakh.(May'22) 51%

Control Price or Create sub-brand like Nexa
Strategic Acquisitions maybe required (e.g. Reva) 2020

Time to Enter?
41%

Already In Market Imminent 2022

Based on the current business environment, should Maruti enter
the E-Car Segment.

FY PC sales(in millions) Fossil

2021-22 2.72

EV
2020-21 2.39

2019-20 2.77

Source :Statista
NASH equilibrium
NASH equilibrium - Maruti can do best what others can do.
Maruti's market share Crude Prices
in PC ( fossil fuel)

Fear of Govt Policy EV - Ecosystem

Environment Battery Swapping Policy
What will be your three strategic recommendations to Maruti on
executing its e-car strategy?

Manufacture the batteries of e-cars locally.

Establish battery manufacturing plant near bauxite-rich areas

(e.g. Odisha, Gujarat).

Set up vehicle scrapping and recycling units.