While its EV exports are already surging, Maruti expects a further boost in demand from the domestic market
Although a bit late in the EV game, Maruti is working on a measured, long-term strategy for this segment. Prices for the eVitara, Maruti’s first EV, were recently announced for the domestic market. Maruti will also be manufacturing the Toyota Ebella EV, the rebadged version of the eVitara. To meet the expected increased demand from domestic and export markets, Maruti is building an exclusive EV production line at its existing Gujarat plant. Let’s check out the details.
Fixing ICE-EV mix-up
At its Hansalpur plant in Gujarat, Maruti is using one of the production lines for both ICE and EV models. This specific production line has an annual capacity of around 1 lakh units per annum. ICE cars like the Fronx and EVs such as the eVitara and Toyota Ebella are being manufactured on this production line. This mixed usage is creating bottlenecks. The related issues could be further aggravated as production lines get stretched to full capacity in the near future.
To fix such issues, Maruti is building a dedicated production line for its electric cars. Maruti’s current plant in Hansalpur has a production capacity of 7.5 lakh units per annum. The new production line being developed is internally called the ‘Production D’ line. When this is operational, the plant’s overall capacity will increase to 10 lakh units per annum. With this approach, Maruti can also free up space for its popular ICE cars produced at the facility.
During a conference call, Partho Banerjee, Senior Executive Officer (Marketing & Sales) at Maruti Suzuki, said that they are trying to achieve a balance between production of ICE cars and EVs at the shared production line. He said that the issues will be resolved soon and production will be much smoother for both ICE cars and EVs after July. Maruti is also building an entirely new second plant in Gujarat at Khoraj, which will add another 10 lakh units per annum capacity.
Focus on reducing waiting period
Banerjee said that the company is working to ensure low waiting periods, something that has been one of the USPs of the brand. Car sales have surged dramatically after the GST reforms were introduced. Maruti is among the auto companies that have benefitted immensely from the lower GST rates.
In January, Maruti bookings registered a YoY increase of close to 25%. As compared to the usual waiting period of up to one month for Maruti cars, pending bookings have surged to 1.75 lakh units. This is putting pressure on production lines, making it necessary to boost efficiency and expand capacity.
Demand for Maruti cars continues to surge. Wholesales in January were at 2,36,962 units, a YoY increase of 11.6%. This is the highest monthly dispatch ever in the history of the carmaker. Domestic wholesales in January were at 1,78,300 units, whereas export numbers surged to 51,020 units, an increase of 88%. Dealer stock in transit is at around 6–7 days, which indicates continued high demand for Maruti cars.
Source
Source: Electric - rushlane.com
