Japanese automaker Suzuki Motor Corporation on Sunday said it will invest around about Rs 10,445 crore in two tranches by 2026, for manufacturing of Battery Electric Vehicles (BEV) and BEV batteries in its Gujarat plant in India.
The company said it signed a Memorandum of Understanding (MoU) for approximately 150 billion yen (104.4 billion rupees approximately) with the Gujrat state government at India-Japan Economic Forum held in Delhi and in the presence of Japanese Prime Minister Fumio Kishida and Indian Prime Minister Narendra Modi.
That comes in line with a Japanese media report which showedJapan’s Suzuki Motor plans to invest about $1.26 billion in its India factory to produce electric vehicles and batteries.
At the India-Japan Economic 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 to realise Self-reliant India (Atma-nirbhar Bharat).”
Under the MoU, the company’s wholly-owned arm Suzuki Motor Gujarat Pvt Ltd (SMG), will invest Rs 7,300 crore to construct a plant for BEV batteries at a land neighbouring SMG’s existing plant by 2026.
Also, SMG will invest another Rs 3,100 crore to increase BEV manufacturing production capacity by 2025.
Moreover, another group firm Maruti Suzuki Toyotsu India Pvt Ltd (MSTI), will invest Rs 45 crore in constructing a vehicle recycling plant by 2025.
In November 2019, Maruti Suzuki and Toyota Tsusho Group had announced a joint venture for vehicle dismantling and recycling and set up a unit in Noida, Uttar Pradesh.
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 challenging to sell affordable EVs at a 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 a lack of infrastructure and government support.