Suzuki Motor recently announced that the company is looking forward to invest Rs 10,440 crore in India to build an all-new electric car and battery production facility.
Suzuki Motor is the parent company of the Indian automobile giant, Maruti Suzuki and the company is looking forward to rolling out the initial batched of affordable EVs from early 2025.
Dissecting the numbers, out of the Rs 10,440 crore the company is planning to invest, Rs 3,000 crore will be spent to build a new plant to ‘increase’ production. This means Maruti Suzuki may soon start production of EVs in other facilities also.
Moreover, the company has also added that an amount of Rs 7,300 crore will be used to manufacture electric batteries for EVs.
The announcement was made on Sunday regarding the Japanese automaker’s interest to start producing electric cars and batteries for electric cars in India.
In addition to this, Suzuki already has a global tie-up with Toyota, and the company is preparing to develop and launch new electric vehicles. Through this tie-up, we can see Toyota and Maruti Suzuki partnering up to produce some electric vehicles in near future.
According to a few sources, the upcoming proposed electric vehicle manufacturing plant will be set up very close to Maruti Suzuki’s existing plant in Gujarat.
This said plant is also said to be owned by Suzuki Motor Gujarat (SMG), which is a 100 per cent subsidiary of Suzuki Motor Corporation. This entity supplies fully manufactured cars to Maruti Suzuki and in India.
Speaking about the current manufacturing plant in India, thanks to the strong demand for Maruti Suzuki cars, the company has recently started a new production line. This has resulted in increased annual production and the current annual production stand at 750,000 units.
Speaking about the company’s development in the EV sector, Suzuki has already developed an all-new Lithium-Ion battery pack production unit through a joint venture comprising of two more companies – Denso Corp and Toshiba.
These Lithium-ion batteries are expected to be produced at the Hansalpur facility in Gujarat and the production of this battery pack is said to commence by the end of this year.
Thoughts About Maruti Suzuki’s Rs 10,440 Crore EV Production Facility In India
One of the biggest reasons for the major investment is to localise the production of its electric vehicles in India. With such as large scale localisation, we expect Maruti Suzuki to produce electric cars at a cheaper rate than any of its competitors in India.
If this is true, Maruti Suzuki will soon start to dominate the electric vehicle segment in India with its aggressive pricing and a wide product portfolio that cater to the needs of Indian buyers.
Keyword: Suzuki To Invest Rs 10,440 Crore In India: EV Plant In Gujarat