NEW DELHI: Japan’s Suzuki Motor Corporation (SMC) has signed a memorandum of understanding (MOU) with the State of Gujarat to invest approximately 150 billion yen (approximately Rs 10,440 crore) for local manufacturing of electric vehicles (BEV) and BEV batteries.
The MOU was signed on 19 March 2022 at India-Japan Economic Forum held in New Delhi in the presence of Japanese Prime Minister Fumio Kishida and Indian Prime Minister Narendra Modi. Fumio Kishida, who was on a two-day trip to India on Saturday had announced a 5 trillion yen ($42 billion) investment in India over the next five years during a meeting with Narendra Modi.
Toshihiro Suzuki, Representative Director & President, Suzuki Motor Corporation said, “Suzuki’s future mission is to achieve carbon neutrality with small cars.” He added, “We will continue active investment in India to realize Self-reliant India (Atma-nirbhar Bharat).”
Under the MoU, Suzuki Motor Corporation’s wholly-owned Suzuki Motor Gujarat Pvt Ltd (SMG) will invest Rs 7,300 crore for the construction of a battery plant near SMG’s automobile manufacturing unit by 2026. SMG will invest another Rs 3,100 crore for ramping up production capacity for EVs by 2025.
The signing of the MoU is a very important step for India’s EV ambitions and for the country’s largest carmaker- Maruti Suzuki- as it marks its entry in the EV space. So far, SMC’s India arm- Maruti Suzuki- has been criticised for being a late entrant as rival carmaker Tata Motors has launched multiple battery-run vehicles and other automakers such as Hyundai and MG Motor have an EV in their portfolio.
While it is not known when exactly Maruti Suzuki would start rolling out EVs in India, the company’s senior executives have previously stated that they won’t see an EV launch at least till 2025.