New Delhi: Maruti Suzuki India Ltd will explore the possibility of developing cars that will run on alternative fuels such as ethanol and methanol along with its efforts to launch electric vehicles, chairman R.C. Bhargava said.

The country’s largest car maker is also planning to develop more CNG-run engines for its cars in the years ahead to reduce carbon emissions from its vehicles, Bhargava told shareholders at the company’s annual meeting in New Delhi.

The development of a policy for electric mobility is essential and electrification of small cars continues to be a challenge for the industry since it will be more expensive than the ones that run on internal combustion engines, he said.

“Trade war between countries and US’s sanction on Iran have had an adverse impact on commodity cost. Hence, the union government’s decision to push for electric vehicles is good," added Bhargava.

In the year ended 31 March, parent Suzuki Motor Corp. took significant steps towards electric mobility by partnering with Toyota Motor Corp. for the development of small electric vehicles for the Indian market. Suzuki also announced a lithium-ion battery manufacturing plant in Gujarat in a joint venture with Denso Corp. and Toshiba Corp.

“The cooperation between Suzuki and Toyota is because we want to give the best technology to the customers and also for the overall benefit of the nation," Bhargava told shareholders.

Bhargava, however, does not expect electric vehicles by themselves to curb the rising levels of air pollution in the National Capital Region since cars contribute just 2% of the overall pollution.