The Japanese manufacturer is betting big on the Indian EV market
Suzuki Motor Corporation recently signed a memorandum of understanding with the State of Gujarat, India to invest about 150 billion yen (104.4 billion rupees or RM5.3 billion) for local manufacturing of electric vehicles (BEV) and BEV batteries.
The MOU was signed on 19 March 2022 at India-Japan Economic Forum held in New Delhi, India, in the presence of Japanese Prime Minister Fumio Kishida and Indian Prime Minister Narendra Modi.
Speaking at the forum, Toshihiro Suzuki, Representative Director and President, Suzuki Motor Corporation said, “Suzuki’s future mission is to achieve carbon neutrality with small cars. We will continue active investment in India to realize Self-reliant India (Atma-nirbhar Bharat).”
According to the manufacturer, 73 billion rupees will be used for the construction of a BEV battery plant at a land near Suzuki Motor Gujarat’s (SMG) existing factory by 2026, while 31 billion rupees will go towards increasing the manufacturing capacity for EVs at the aforementioned factory in 2025. The remaining amount (450 million rupees) will go towards establishing a vehicle recycling plant by Maruti Suzuki Toyotsu in 2025.
Due to factors such as high upfront cost and lack of charging infrastructure, the EV adoption rate in India has been slow. In terms of product availability, those who aim to make the switch are likely spoilt for choice as there are plenty of EVs available on the market, from the affordable Mahindra E Verito to the expensive Porsche Taycan.
Maruti Suzuki does not currently have an EV in its portfolio and has previously said that it will enter the EV segment “only when it is feasible”. However, there have been reports of the automaker testing a pure electric version of the WagonR hatchback.
