CNG cars not as clean as hybrids but better than petrol, diesel: Maruti Suzuki chairman

Maruti Suzuki chairman RC Bhargava says that CNG-powered cars are not as clean as hybrids but are better than petrol or diesel vehicles. Hybrid cars improve fuel efficiency by about 35% to 45% and help reduce carbon and greenhouse gas emissions by 25% to 35%, Bhargava says in the company’s annual report for 2023-24.

A major national objective for the car industry is to reduce carbon and green house emission and the dependence on imported fuel, Bhargava says, adding that the best strategy would be to offer to customers cars with different technologies and at different price levels.

“We will be introducing electric cars in the next few months. The ability to rapidly expand the acceptance of such cars would depend on the pace of infrastructure development and reduction of the cost of electric cars. This has to largely come from localisation of production and better technology,” he says.

“It is also clear that pure petrol and diesel cars are the worst in terms of carbon and greenhouse gas emission and consumption of fuel. Therefore, while electric cars use increases, customers should be encouraged to buy cars using strong hybrid technology, or CNG or ethanol and biogas. Pure petrol and diesel car use should be minimized,” Bhargava adds.

Maruti Suzuki expects to sell about 600,000 such cars this year.

Speaking on why Maruti Suzuki was slow when it came to manufacture EVs, Bhargava says, “We decided to adopt a more diversified approach to meeting national objectives and did not want to put all our eggs in one basket. The government has also accepted that in India there is a need to use different technologies. Some States, like UP, have already taken steps in this direction. We now await a policy framework that would lead to the promotion of all technologies that result in petrol and diesel cars being replaced by cars using other technologies.”

“We are also working on modifying engines of cars and presently can use petrol blended with 20% ethanol. Technology exists to enable cars to use higher amounts of ethanol,” he adds.

On small entry-level cars, Bhargava says Maruti Suzuki will never forget the needs of the large numbers who cannot afford expensive cars even as it produces more SUVs and higher cost cars to cater to a different market segment. “Your Company has been the industry leader since 1986-almost for 40 years. Two generations have consistently placed trust in the Maruti brand. I believe that one of the main reasons for this has been we have always endeavoured to align our strategies and policies with national priorities and societal needs. Our belief has been that the Company will benefit most if, while enhancing its competitiveness, the economic and social needs of society are also met to the maximum extent possible. Thus, our continued efforts to manufacture low-cost small cars has been in recognition of the economic condition of a large majority of citizens and their aspiration to own a comfortable and safe means of transport,” says Bhargava.

Maruti Suzuki was the first carmaker to extend its sales and service network to rural areas and small towns. “The intention was that people in these areas of the country should get facilities similar to what was available to those dwelling in large cities. Now about 46% of our sales come from rural areas,” says Bhargava.