Suzuki Motor announced that it would invest Rs 10,440 crore to build electric car and battery factory in India. Maruti Suzuki is hoping to carry out affordable EV models in both Japan and India as early as 2025. In order to increase the production of electric vehicles in India, the Japanese automaker will invest around Rs 3,000 crore for the new plant for manufacturing electric cars and Rs 7,300 crore to manufacture electric batteries.
“Investing so much money in the Indian market is not justified as there are still doubts how much the domestic market will grow for EVs. It has to be for export, too,” said a person in the know. “Suzuki’s future mission is to achieve carbon neutrality with small cars,” said Toshiri Suzuki, president of Suzuki Motor Corporation.
Suzuki has already fostered a Lithium-Ion battery pack production unit in a joint venture with Japanese organizations Denso Corp and Toshiba at Hansalpur in Gujarat. The assembling is set to begin by this year.
From 2021 to 2025, Suzuki means to spend a sum of 2.2 trillion yen on research and development and capital investment. Of the aggregate, around 1 trillion yen will go into R&D, the greater part of which will be reserved for the development of EVs.