Suzuki Motor to invest USD1.3 billion to produce EVs in India
Suzuki Motor Corporation (SMC) has signed a memorandum of understanding (MoU) with the State of Gujarat, India, to invest approximately JPY150 billion yen (USD1.3 billion) for local manufacturing of electric vehicles (BEV) and BEV batteries.
The MOU was signed on 19 March 2022 during the India-Japan Economic Forum held in New Delhi, India, in the presence of Japanese Prime Minister Fumio Kishida and Indian Prime Minister Narendra Modi.
Japanese foreign direct investment into India has mainly been in the automobile, electrical equipment, telecommunications, chemical and pharmaceutical sectors. Since 2000 investments into India have been around USD27.28 billion.
As of February 2022, Maruti Suzuki India Limited has a market share of 44.2% in the Indian passenger car market. Maruti Suzuki has two manufacturing facilities in Haryana (Gurgaon and Manesar), and one manufacturing complex in Gujarat wholly-owned by parent company Suzuki which supplies its entire production to Maruti Suzuki. All manufacturing facilities have a combined production capacity of 2,250,000 vehicles annually (1.5 million from Maruti Suzuki’s two plants and 750,000 from Suzuki Motor Gujarat).
Toshihiro Suzuki, representative director and president, Suzuki Motor Corporation and Kenichi Ayukawa, managing director and CEO, Maruti Suzuki India Limited, were joined by eminent senior government personnel of India and Japan at the ceremony.
Speaking at the forum, Suzuki said, “Suzuki’s future mission is to achieve carbon neutrality with small cars.”
“We will continue active investment in India to realize Self-reliant India (Atma-nirbhar Bharat),” Suzuki said.
The investment of INR 31 billion (USD409.7 million) to increase production capacity for BEV manufacturing will be made by Suzuki Motor Gujarat Private Limited (SMG) in 2025.
Also in 2025, Maruti Suzuki Toyotsu India Private Limited (MSTI) will invest INR450 million (USD5.9 million) in a vehicle recycling plant.
In 2026, SMG will invest INR73 billion (USD964.8 million) to construct a plant for BEV batteries.