Price of Suzuki EVs to be based on 2014 pact: Bhargava

Suzuki Motor Corporation’s wholly-owned arm Suzuki Motor Gujarat (SMG), which plans to locally manufacture EVs and batteries by 2026, will follow the same arrangement for selling the vehicle to Maruti Suzuki India (MSI) as it currently has for internal combustion engine (ICE) cars.

Maruti Suzuki chairman RC Bhargava said that the pricing of electric vehicles (EVs) or batteries sold by SMG to MSI will take into account the cost of material, labour, electricity, depreciation of equipment and other consumables, but not include any profits.

“The pricing of the EVs sold will be based on the contract manufacturing agreement signed at the time of the setting up of the SMG plant in 2014,” Bhargava said.

He was responding to a report by proxy advisory firm Institutional Investor Advisory Services, that said Suzuki’s move would leave MSI with a legacy portfolio of cars with a limited future. “Tell me how is it possible? If the arrangement is working fine now with no disadvantage, how can it be wrong for EVs. The only thing changes with the new plant is instead of ICE there would be EVs.”

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