India?s car market is set to reach 20 million units by 2047, driven by significant growth in battery electric vehicles, according to Suzuki Motor Corp. Executive Vice President Kenichi Ayukawa.

First, Maruti Suzuki India Ltd., Suzuki's subsidiary, aims to capture 50% of the market share by 2030, up from the current 40%. "We're confident that the Indian market will expand in the mid to long term," Ayukawa stated in an interview.

The emergence of India as an economic powerhouse and its expanding middle class present a clear opportunity for Suzuki. Since entering the Indian market in 1983, Suzuki has become the top-selling automaker with models like the Swift and Brezza. To maintain its lead, Suzuki plans to introduce its first-ever electric vehicle (EV) in India and Europe next year, showcasing its mass production model at the upcoming auto expo in India in January.

In the fiscal year ending in March, 4.2 million passenger vehicles were sold in India, according to the Society of Indian Automobile Manufacturers. For comparison, 3.1 million passenger cars were sold in the US last year, while Europe saw 15 million in unit sales. China remains the world's largest automobile market with 26 million passenger vehicle sales, as reported by the International Organisation of Motor Vehicle Manufacturers.

"We'll develop products, invest, and expand our network," Ayukawa emphasised.

Although Suzuki's planned eVX is a premium electric vehicle, the company will also introduce more affordable and compact models with lighter batteries. Suzuki aims for 15% of its sales in India to be EVs by 2030."India faces environmental issues, so I think EVs will grow to an extent," Ayukawa noted. Despite the growing interest in cars, "India remains a price-conscious market," he added. However, there is increasing demand for crossovers and sport-utility vehicles, a segment with strong competition from Tata Motors and Mahindra.

Tata Motors, India's third-largest carmaker, has led with fully-electric variants of its popular Tiago and Nexon models, expecting its EV business to become profitable by early 2026.

Suzuki will focus on everyday-use models, requiring the development of new battery types. The company may start domestic production of cells within the next 5 to 10 years. Regarding its strategic partnership with Toyota Motor Corp., Suzuki will likely concentrate on smaller cars while Toyota focuses on larger models. Toyota's EV technology will also enhance Suzuki's product development. "We will learn basic know-how from Toyota and gradually make it our own," Ayukawa said.

Suzuki also sees potential in cars powered by compressed natural gas (CNG), which is cheaper than gasoline in India. Maruti Suzuki sold 483,000 CNG cars in the latest fiscal period, up 47% from the previous year. The company plans to start operating four plants to convert methane from cow manure into fuel for CNG cars. However, challenges remain, such as monetizing the organic fertilizer produced during fuel manufacturing.

With robust plans for EVs, alternative fuels, and strategic partnerships, Suzuki is well-positioned to capitalise on India's expanding automobile market, projecting significant growth by 2047.

(Source:BS & Bloomberg)