Maruti Suzuki bets on hybrids over electric vehicles in clean shift

Maruti Suzuki India Ltd., the automaker that sells every other car on the nation's roads, believes electric vehicles aren't the answer to reducing carbon emissions in the world's third-biggest releaser of greenhouse gases at least not in the immediate future.

India's largest automaker reckons that vehicles powered by hybrid technology, natural gas and biofuels present a better path toward a cleaner future than electric cars considering the nation generates about 75% of its electricity from dirty coal, Chairman R.C. Bhargava said in an interview.

Those views put Bhargava at odds somewhat with several of the world's largest car manufacturers, including No. 2 player Volkswagen AG, which is forecast to unseat Tesla Inc. as the leading maker of electric cars as soon as 2024. 

Toyota Motor Corp., which sells the most cars globally, is putting a lot of money into electrifying its line up too but believes in hybrid technology as a logical interim step while the industry builds out stable battery supply chains.

India's shift to electric vehicles is also much slower than other major markets like China and the US even though Prime Minister Narendra Modi has committed to making the South Asian nation a net-zero carbon emitting one by 2070. Arthur D. 

Little estimates by 2030, electric passenger cars will make up only about 5% of total EV sales. More progress on the two- and three-wheeler front will bring the automobile battery-powered total to about one-third.

Charging EVs with clean energy and reducing dependence on coal is difficult in India, the world's second-most populous country with some 1.4 billion people. 

The nation was forced to import millions of tons of coal after electricity demand soared amid scorching summer temperatures and rising industrial activity after the pandemic.