Q. Maruti Suzuki showcased a Flex Fuel vehicle for the first time in an Auto Expo. You have already showcased hybrids. And some other OEMs have showcased hydrogen vehicles too. So, ethanol, flex fuel, hydrogen, are they closer to the market now?
Well, we are working on a gamut of technologies to meet our objective of meeting the sustainability goals of India. And there is an energy mix which is now being looked at by the government. First, of course, is how we can reduce our oil import bill. And therefore, can we increase the efficiency of our existing powertrains? So existing powertrains, all of them have been upgraded, to improve the fuel efficiency. Second, the government has been talking about gas based mobility and increasing the number of CNG stations across India. And it’s going to be about 10,000 in the next five years. So we are also participating in that. That’s an objective for energy security for India, and that’s also creating a low cost of ownership or low cost of running for the customer today. We have 14 brands today, which are having CNG technology, and that’s being increasingly accepted by customers. Which is also helping reduce CO2 emissions by almost 20-25% depending on the product.
Then there’s ethanol. That’s another mission that’s there from the government side, how we can use the surplus grain or the surplus molasses to convert it into ethanol. And can we replicate the Brazil model is the effort.
Q. But can it be, because the economy, and some other factors may not be liked?
Yes, there are many factors, of course, but having said that, there is a clear direction coming from the government, that we need to have this. And so towards that, the first step is for all E10 vehicles to be E20 compliant by 2025, and pan India E20 fuel is going to be available by then. Currently, all our products are E10. We are going to make them materially compatible by April 2023.
Post April ‘23 you don’t have a problem about E10 or E20 filling as far as that is concerned. The second step is, when the volume of ethanol availability increases, we are going to move towards flex fuel. So we have made a running prototype of a flex fuel vehicle. It is running on E85 fuel. You will see our flex fuel (production) vehicle sometime in 2025. All that we are only looking for is availability of flex fuel across India, and also what are the kinds of carbon credit one can get by using this flex fuel. And that’s the discussion that we’re having with the government.
You also touched upon hydrogen. The green hydrogen mission of India was recently showcased. And there is a push towards hydrogen, and many manufacturers are going towards green hydrogen. Green hydrogen is also being used in PNG, along with natural gas, which is going to the houses and townships and that’s a start. We expect that it will also go to CNG. That’s also one direction. You can mix hydrogen with CNG to get H-CNG. And what is the percentage? That’s the next step, which we are going to take.
And the possibility is, of course, the hydrogen engine itself, which has been showcased by some commercial vehicle manufacturers (at Auto Expo). That’s a possibility, which is also there. As a small car, small engine manufacturer, we have to also see how that would impact, and what are the aggregates which need to be changed. Even with the flex fuel, we had to change a whole lot of parts.
Q. Is it practically like redeveloping an engine?
The flex fuel engine is almost like a new engine. Many of the parts get changed. So that’s the effort, and the one last thing which is there is going to be the bio CNG. Bio CNG is waste-to-fuel. So that’s again carbon negative. Whatever you have got, if you’re able to get that extracted and use it as fuel, and reduce the CO2, that’s also one effort which is there, which we believe is going to be a direction. And the government already has a mission for biogas. 5,000 LoIs have already been issued to various manufacturers under the SATAT scheme.
So, many, many technologies, because of the kind of products which we have got where the value proposition can be built. That’s one aspect. Apart from all of this, of course, we are doing hybridisation. We have a mild hybrid, and now a strong hybrid in the Grand Vitara. We launched the EVX (concept), which is our commitment towards electrification and bringing electric vehicles into India, with an investment about INR 10,000 crore. So, a wide gamut of technologies for all products and segments which are represented, and to create value for the customer. But, do it in a sustainable, and affordable way.
Q. Some commercial vehicle manufacturers showcased hydrogen, and this time there’s a new dimension of hydrogen ICE technology. Do you see a space for that in Maruti Suzuki’s portfolio also, in your overall energy mix?
As I said, that’s one direction that some CV manufacturers have showcased. We’ll have to look at it as a possibility. World over, that’s also being looked at. We’ll also have to look at it from our engine technology development perspective. We’ll definitely study that.
Q. 2025 will be a very important year for the industry in terms of the move to E20 fuel. And for Maruti Suzuki specifically, you will venture into the EV space. You will also have the first flex fuel vehicle in the same year. By the turn of this decade, what’s the mix you expect in terms of fuel technologies in your sales volume?
That’s something we’ll have to see because it will be directly dependent on the availability of the fuels. As the number of CNG stations increase, we are seeing CNG adoption grow in a big way. So as ethanol, E85 fuel start becoming available, definitely, I’m sure manufacturers will start bringing in flex fuel vehicles. And two wheelers are also doing that work. The two-wheeler sector consumes a lot of fuel. 65% of the petrol is consumed by two wheelers. And so therefore, there is a good opportunity to reduce the carbon footprint. I think these are things which you need to continuously look at and work on. I can’t give any specific numbers at this point in time, because once we start introducing these we can start seeing some numbers and traction.
Q. What you’ve shared are policy level or government level directions and the OEM level actions. From the end user perspective, for example, the significantly lower (than petrol) calorific value of ethanol will be an issue.
That is definitely a challenge. And that’s again the thing that can make the E85 fuel relevant to the customer. Because of the reduced road fuel efficiency which he is going to get, can that be compensated through pricing so that he sees a merit in adoption. So that’s something on which we have to work on.
Q, You launched the much awaited Jiminy, and the Fronx. What is your strategy now for the SUV space? What kind of contributions do you expect from the SUV portfolio?
Well, we’ll continue to be pushing for SUVs. We’ve already launched three vehicles since last year, including the XL6. We have launched two additional models—the Fronx and the Jimny 5-door. So that will be a total of five, and we hope that will increase our market share in the SUV space from the current 15% to a much higher number so that we can achieve our objective of retaining the 50% market share.
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