Suzuki Motor on Sunday said it will build a new factory in Gujarat to manufacture electric vehicles (EV-EVs) and batteries, with the Japanese automaker earning about Rs 104 billion for EV plant and manufacturing in India. Will invest. Suzuki, the parent company of Maruti Suzuki, India’s largest car manufacturer, sells one of every two cars in the country.
Maruti Suzuki, which has previously paid little attention to the EV (EV) market, has claimed that the Indian market is not ready for EV. Its rivals Hyundai and Tata Motors have announced the launch of electric vehicles. Sales of four-wheel EVs are on the rise in 2021 amid the coronavirus epidemic in India.
The segment reported sales of 5,500-6,000 vehicles in the last fiscal year, and the division reported more sales of 3,400 vehicles compared to 2020. This means that total sales increased by 60-75%.
Through a global agreement with Toyota, Suzuki is gearing up to enter the non-IC engine vehicle market and India will be a key part of the project. Suzuki Motor Corporation (Maruti Suzuki) and Toyota Motor Corporation (Toyota Kirloskar Motors) Indian subsidiaries are working on mass EV products, which will be sold in India and exported to European and South Asian countries.
Investing in the total amount for the Indian market is not sustainable. Because there are still doubts about how much the domestic market for EVs will grow. Therefore, a certain amount of vehicles should also be manufactured for exports, the company said.
“The goal of Suzuki’s future is to achieve carbon neutrality with small cars,” Tosiri Suzuki, president of Suzuki Motor Corporation, said in a statement.
The battery unit will be installed at the Suzuki factory owned by Suzuki Motor Gujarat (SMG), a 100 percent subsidiary of Suzuki Motor Corporation, which supplies Maruti. It recently started new production to increase its annual production to 7.50 lakh units.
From 2021 to 2025, Suzuki intends to spend a total of 2.2 trillion yen on research and development and investment. In total, about 1 trillion yen goes for research and development (R&D), with the bulk of it being earmarked for the development of EVs.
Suzuki plans to roll out affordable EV models in both Japan and India by early 2025. Japan’s Prime Minister Fumio Kishida will visit India on Saturday to meet Prime Minister Narendra Modi. The media has reportedly discussed investing in the EV sector during the tour.