Suzuki Motor Corporation has signed a Memorandum of Understanding (MOU) with the state of Gujarat for the manufacturing of electric vehicles and battery manufacturing in India. The company would be investing 150 billion Yen (about Rs. 10,440 crores) for Carbon Neutrality.
MOU was signed during the India-Japan Economic Forum in New Delhi on 19th Mar 2022. The investment layout will be as follows:
- Suzuki Motor Gujarat will be investing about Rs. 3,100 crores for increasing the production capacity for battery electric vehicle manufacturing by the year 2025.
- Additional investment of Rs. 7,300 crores rupees will also be done by Suzuki Motor Gujarat for electric vehicle batteries plant construction by the year 2026.
- Maruti Suzuki Toyotsu India Private Ltd (MSTI) will be investing Rs. 45 crores for construction of vehicle recycling plant by the year 2025.
At the forum, the president of Suzuki Motor Corporation Toshihiro Suzuki said that the company’s mission is to achieve carbon neutrality with small cars.
This investment is a key factor for Maruti Suzuki to finally focus on electric vehicles as the company currently is behind its Indian peers in the race of battery electric vehicles. Though, no change in the electric vehicle launch timeline of 2025 has been announced yet.