Japanese carmaker Suzuki Motor Corporation on Sunday said it would invest about Rs 10,445 crore in two phases by 2026, for the manufacture of Electric Vehicle Battery (BEV) and BEV batteries at its Gujarat plant in India.
The company said it signed a Memorandum of Understanding (MoU) for about 150 billion yen (about 104.4 billion rupees) with the Gujrat state government at the India-Japan Economic Forum held in Delhi and in the presence of Japanese Prime Minister Fumio Kishida and Indian Prime Minister Minister Narendra Modi.
That’s in line with Japanese media reports showing Japan’s Suzuki Motor plans to invest about $ 1.26 billion at its plant in India 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 realize Independent India (Atma). -nirbhar Bharat). ”
Under the MoU, the wholly -owned arm of Suzuki Motor Gujarat Pvt Ltd (SMG), will invest Rs 7,300 crore to build a plant for BEV batteries on land adjacent to SMG’s existing plant by 2026.
In addition, SMG will invest another Rs 3,100 crore to increase BEV manufacturing production capacity by 2025.
In addition, another group firm 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 as well as setting up a unit in Noida, Uttar Pradesh.
SMC’s Indian branch, Maruti Suzuki plans to enter the electric vehicle segment by 2025. The company, a leader in the mass market segment, maintains that at current prices, it is challenging to sell affordable EVs on a large scale.
Maruti Suzuki in early 2019 had tested an electric vehicle based on its WagonR with plans to launch in 2020 but decided not to launch a commercial launch for personal use, citing lack of infrastructure and government support.