Japanese automaker Suzuki Motor Corporation announced on Sunday that it will invest around Rs 10,445 crore in two tranches by 2026, for the manufacture of battery electric vehicles (BEVs) and battery BEVs at its factory in Gujarat, India. .
The company said it signed a memorandum of understanding worth about 150 billion yen (about 104.4 billion rupees) with the Gujrat state government during the India-Japan Economic Forum held in Delhi and attended by the Japanese Prime Minister Fumio Kishida and Indian Prime Minister. Minister Narendra Modi.
This is in line with a Japanese media report which showed that Japanese Suzuki Motor planned to invest around $1.26 billion in its Indian plant to produce electric vehicles and batteries.
At the India-Japan Economic Forum, Representative Director and Chairman of Suzuki Motor Corporation (SMC), Toshihiro Suzuki, said, “Suzuki’s future mission is to achieve carbon neutrality with small cars. We will continue to actively invest in India to realize self-reliant India (Atma-nirbhar Bharat).”
As part of the MoU, the company’s wholly owned subsidiary Suzuki Motor Gujarat Pvt Ltd (SMG) will invest Rs 7,300 crore to build a BEV battery factory on land adjacent to the existing factory in SMG by 2026.
In addition, SMG will invest an additional Rs 3,100 crore to increase BEV’s manufacturing production capacity by 2025.
Additionally, another group company, Maruti Suzuki Toyotsu India Pvt Ltd (MSTI), will invest Rs 45 crore in building a vehicle recycling plant by 2025.
In November 2019, Maruti Suzuki and Toyota Tsusho Group announced a joint venture for vehicle dismantling and recycling and established a unit in Noida, Uttar Pradesh.
SMC’s Indian arm, Maruti Suzuki, plans to enter the electric vehicle segment by 2025. The company, a leader in the mass market segment, argued that at current prices it would be difficult to sell large-scale affordable electric vehicles.
Earlier in 2019, Maruti Suzuki tested an electric vehicle based on its WagonR with plans to launch in 2020, but decided not to launch commercially for personal use, citing a lack of infrastructure and government support.