Archive · 4 Nov 2025
Japanese Carmakers Hesitant on Small EVs in India Amid Cost Concerns
Big car companies from Japan, like Suzuki and Honda, are making small electric cars, but they are not sure if people in India will buy them.
This is because electric cars are still too expensive for most Indians who prefer cheaper small cars.
The batteries for electric cars cost a lot of money, and many of them come from China.
Even though the government is trying to make electric cars more popular, people in India worry about how far the cars can go and if they can find places to charge them easily.
While Indian electric scooter companies are selling many small electric scooters, the car companies think it's better to focus on bigger electric cars or cars that use regular gasoline for now.
They believe that once the cost of batteries goes down and charging gets easier, they might consider selling small electric cars in India.
Japanese automakers Suzuki and Honda are developing small electric cars for markets like Japan but are hesitant to launch them in India.
Concerns regarding the high cost of batteries and the price-sensitive nature of India's small-car market are key deterrents.
Battery technology, with significant dependence on Chinese suppliers, contributes substantially to the overall cost of electric vehicles.
While electric two-wheelers have seen success in India, the economic viability of small electric cars remains a challenge for mass adoption.
Carmakers believe that issues like range, charging infrastructure, and overall cost need to be addressed before small EVs can be successful in India.
- Who
- Suzuki and Honda (Japanese carmakers)
- What
- Are cautious about launching small electric cars in India due to economic and technological viability concerns, despite developing such models for other markets.
- When
- Currently, with plans for Japan and international markets next year.
- Where
- India, contrasted with Japan and other potential international markets.
- Why
- The high cost of batteries and EVs makes them economically unviable for India's price-sensitive small-car market, with concerns also around charging infrastructure and consumer acceptance.
- Japanese Carmakers Showcased
- Suzuki's Vision e-sky and Honda's Super-One electric cars
- Target Market for New EVs
- Japan and other international markets, not initially India
- Key Barrier for Small EVs in India
- High unit economics and price sensitivity of the small-car market
- Battery Cost Share
- Approximately 40% of an electric car's cost
- Dominant Battery Suppliers
- Chinese companies like CATL, Gotion, Svolt
- Existing Small EV Players in India
- Tata Motors (Tiago EV) and MG Motors (Comet EV)
- Consumer Concerns for EVs
- Range, charging infrastructure, charging time, and resale value