Quick Highlights:Maruti Suzuki is reviewing its EV penetration estimate of 13–15% by 2030 following GST 2.0 changesReduced GST on ICE vehicles has widened the price gap between petrol-diesel cars and EVsElectric car penetration has fallen to 3.7% despite strong year-on-year volume growthMaruti Suzuki plans to strengthen the EV ecosystem with charging infrastructure and assured buyback programsIndia’s largest passenger vehicle manufacturer, Maruti Suzuki , has indicated that it may revise its long-term electric vehicle penetration forecast for the domestic market after recent changes in the Goods and Services Tax (GST) regime altered the relative pricing dynamics between internal combustion engine vehicles and electric cars. The reassessment comes amid signs that EV adoption has softened in recent months , even as overall passenger vehicle demand remains robust.The company had earlier projected that electric vehicles would account for around 13–15% of total passenger vehicle sales in India by 2030 , based on an industry volume estimate of 5.5 to 6 million units . However, this forecast was made prior to the implementation of GST 2.0, which significantly reduced tax rates on petrol and diesel cars, particularly in the small car segment where Maruti Suzuki has a dominant presence.Under the revised GST structure, small ICE cars measuring up to four meters in length now attract a flat GST rate of 18% , down from an effective rate of about 31% earlier, which included cess. Mid-sized and large ICE cars over four metres in length have also seen tax relief, with the effective GST rate reduced to 40%, compared with the earlier range of 43% to 50%. In contrast, the GST rate on electric vehicles has been retained at 5% .While the lower tax rates have provided a boost to overall passenger vehicle sales and improved affordability for petrol and diesel cars, they have also had the unintended consequence of making EVs appear relatively more expensive to price-sensitive Indian consumers. This widening price gap has prompted Maruti Suzuki to re-examine assumptions around the pace of EV adoption in the country.Partho Banerjee, Senior Executive Officer for Marketing and Sales at Maruti Suzuki, said the company’s earlier projections need to be revisited in light of the new tax structure. He noted that recent market trends suggest a slowdown in EV penetration , even though absolute sales volumes continue to grow.Industry data reflects this shift. Electric car sales in India rose 63% year-on-year in November to around 14,700 units, indicating strong growth momentum in absolute terms. However, EV penetration during the month stood at just 3.7% of total passenger vehicle sales , significantly lower than the pre-GST 2.0 level of around 5%. This suggests that while more EVs are being sold, the broader market for ICE vehicles is expanding at a faster pace, diluting EV share.The Indian electric car market continues to be dominated by Tata Motors , which holds the largest market share, followed by JSW MG Motor and Mahindra & Mahindra . Maruti Suzuki, which has so far stayed out of the mass-market EV space, is preparing to enter the segment with its first battery electric vehicle, the e-Vitara.Production of the e-Vitara has already begun at Maruti Suzuki’s Gujarat manufacturing facility. The company has started exporting the model to the UK and plans to ship units to Japan from January. For the Indian market, while an exact launch date has not yet been announced , management has confirmed that dispatches to dealerships will begin in December, enabling customer test drives in the coming months .Maruti Suzuki believes that the relatively slow adoption of electric cars in India is not driven by pricing alone. According to the company, several structural challenges continue to weigh on consumer confidence. These include discrepancies between claimed and real-world driving range , limited and uneven charging infrastructure , and uncertainty around resale value and long-term ownership costs .To address these concerns, the automaker is focusing on building a comprehensive EV ecosystem ahead of its domestic launch. A key pillar of this strategy is charging infrastructure. Maruti Suzuki has announced plans to facilitate the installation of 1 lakh charging points across India by 2030 . In parallel, it has already upgraded 1,500 workshops to be EV-ready, ensuring service and maintenance support for electric car buyers.The company also plans to introduce an assured buyback program for its electric vehicles , aimed at reducing concerns around resale value and depreciation. By offering greater predictability in ownership costs, Maruti Suzuki hopes to make EVs more attractive to mainstream buyers.Banerjee emphasized that the Indian EV market will reach a true inflection point only when consumers feel confident enough to purchase an electric car as their primary vehicle, rather than viewing it as a secondary or city-only option. According to him, this shift will depend on improvements in real-world range, charging convenience, and overall ecosystem readiness .As Maruti Suzuki reassesses its EV penetration forecast, the broader industry will be watching closely. Given the company’s scale and influence in the passenger vehicle market, any downward revision could signal a more gradual transition to electrification in India than previously anticipated, especially if policy incentives and tax structures continue to favor conventional vehicles in the near term.