Suzuki to invest $1.4B to manufacture EVs at its Indian factory

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Japan’s Suzuki Motor Corp, the parent company of India’s largest carmaker Maruti Suzuki India Ltd, announced fresh investments of Rs 10,440 crore ($1.37 billion) to manufacture electric vehicles (EVs) and batteries in Gujarat in a move that could power EV adoption in the Indian market.

It is the first significant EV strategy unveiled by Maruti Suzuki for India to align itself with a national plan to reduce fossil fuel dependence and reduce air pollution in major cities.

Of the total investment amount, Rs 3100crore($407 million) will be used to raise EV production capacity at Suzuki Motor Gujarat by 2025, while Rs 7300 crore ($958 million) has been set aside to set up an EV battery production plant in 2026. The remaining resources have been earmarked to install a vehicle recycling plant by Maruti Suzuki Toyotsu that will begin operations in 2025, Suzuki Motor Corp. announced.

Suzuki Motor Corp.’s $1.3 billion investment package is a crucial component of Japan’s $42 billion investment in the next five years, as outlined by Japanese Prime Minister Fumio Kishida while visiting Narendra Modi his Indian counterpart.

Toshihiro Suzuki, president of Suzuki Motors, said that Suzuki’s future mission was to achieve carbon neutrality with small cars.