Japanese auto giant Suzuki Motor Corporation will invest around ¥150 Billion (about Rs 10,445 crore) by 2026, for local manufacturing of Battery Electric Vehicles (BEV) and BEV batteries in Gujarat. A Memorandum of Understanding (MoU) to this effect was signed with the Gujarat government on Saturday.
“The MoU was signed at the India-Japan Economic Forum held in Delhi, in the presence of PM Fumio Kishida and PM Narendra Modi,” read the Suzuki Motor Corporation statement. Speaking at the forum, Suzuki Motor Corporation (SMC) representative director and president Toshihiro Suzuki said: “Suzuki’s future mission is to achieve carbon neutrality with small cars. We will continue active investment in India.”
Under the MoU, the company’s wholly-owned arm Suzuki Motor Gujarat Pvt Ltd (SMG) will invest Rs 7,300 crore for the construction of a plant for BEV batteries at a land neighbouring SMG’s existing plant. Also, SMG will invest another Rs 3,100 crore for increasing production capacity for BEV manufacturing by 2025.
Moreover, another group firm Maruti Suzuki Toyotsu India Pvt Ltd (MSTI) will invest of Rs 45 crore for the construction of a vehicle recycling plant by 2025.
SMC’s Indian arm Maruti Suzuki plans to enter the electric vehicles segment by 2025. The company, a leader in the mass market segment, has maintained that at the current prices it would be difficult to sell affordable EVs at mass scale.
Maruti Suzuki had earlier in 2019, tested an electric vehicle based on its WagonR with plans to launch in 2020 but decided against a commercial launch for personal usage citing lack of infrastructure and government support.
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