Suzuki Australia has confirmed plans to introduce its first battery-electric model next year, but the Japanese small-car specialist’s first EV won’t sell in large numbers, won’t be a sub-$40,000 vehicle and is unlikely to open the floodgates for more EVs in future.
That’s the word from Suzuki Australia’s general manager of automobiles, Michael Pachota, who yesterday said: “We start our EV journey in 2025”.
It’s almost certain the EV in question will be a small electric SUV based on the Suzuki eVX concept revealed at the 2023 Tokyo motor show, given it’s the only battery-electric vehicle Suzuki has confirmed for production so far.
Offering a circa-500km range from a 60kWh battery and single e-motor, the Suzuki eVX has a high-tech interior and reasonable ground clearance, but certainly isn’t the Jimny EV that some fans are frothing over.
Asked if the Suzuki eVX will be the first EV for Suzuki Australia, Pachota said: “I would love that car [here]”.
He confirmed that whichever model ends up kicking off Suzuki Australia’s EV journey, he wants it to be on sale in Australia in 2025 – the same year that Australia’s first new-vehicle emissions regulations (NVES) come into effect.
Pachota said Suzuki Australia’s first EV will be a flagship vehicle for the brand and confirmed it would probably be positioned in the $40,000 to $50,000 price bracket.
“Yes [the EV will be Suzuki’s new flagship model] and I would say flagship not only in price but in spec,” he stated.
But as sales of EVs in Australia and globally appear to be levelling off as incentives dry up, Suzuki Australia’s GM is predicting niche sales for its first EV.
“My expectation wouldn’t be for high sales,” said Pachota.
“We would introduce that vehicle and my expectation would be that sales would be very similar to established non-EV brands that have introduced an EV product to complement their range and it would do just that, complement the range.
“It won’t be a volume-seller.”
While Suzuki Australia will enter the EV arena next year, Pachota said the introduction of hybrid models – starting this month with the new mild-hybrid Suzuki Swift – will help form a hybrid-heavy model mix for both Suzuki and the overall market beyond 2025.
Indeed, Pachota forecast that EVs would account for a much smaller percentage of overall sales in Australia than hybrids, and pointed to several mainstream car-makers that have backtracked on their previous promises to become EV-only brands within the next five or 10 years.
“We will apply ourselves accordingly as a brand to the EV space, but I don’t think EV is the total future of the automotive market,” he said.
“I feel EVs have a place but hybrids over the next six to eight years will reach 60 per cent of total sales of motor vehicles in Australia.”
Toyota Australia today announced it will adopt an almost-exclusive hybrid product strategy, but also stated that a mix of powertrain technologies – including mild-hybrid, full-hybrid, plug-in hybrid, battery-electric, fuel-cell electric, hydrogen combustion and even synthetic fuel combustion – was the smartest way forward to cater to all customers.
Like Toyota, Suzuki says EVs are not the only solution to reducing automotive emissions and that it will offer consumers a range of powertrain options going forward. Pachota said an EV-dominated Australian market is unlikely to happen in the short- to mid-term future.
“I'm not bagging EV technology,” he said. “We have a plan as well for the introduction of EVs. But you’ve got to be realistic around the percentage of sales that you see as EV sales, especially with the current infrastructure in the Australian market.
“A lot of [electric] cars are coming back to the used car market with issues around range and [battery] capacity and other bits and pieces are having an effect as well. Not to mention supply versus demand has changed as well.”
Pachota said that markets change and customer demands will always evolve, but suggested that global EV leader Tesla’s strategy of regularly slashing prices had eroded customer loyalty and resale values.
“The competitor set has changed with Chinese brands entering into markets that compete against some of the big guys that have then been forced, based on a huge amount of stock, to reduce EV pricing heavily,” he said.
“It is what is it and let’s just watch this space.”
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