New Delhi, March 19 (UNI) Japan’s Suzuki Motor Corp. plans to invest 150 billion yen ($1.26 billion) to build electric vehicles and batteries in India, Japanese media reported on Saturday.
The Japanese automaker plans to expand the capacity of its plant in Gujarat, in western India, to make electric vehicles starting around 2025. It will also build an electric vehicle battery factory near the plant, said the reports.
The reports come as Japanese PM Fumio Kishida is in India to hold the 14th India-Japan annual summit talks with PM Narendra Modi. The move by the Japanese automaker is in line with efforts by the Indian government to reduce greenhouse gas emissions amid the global trend toward decarbonization, said the reports.
Suzuki, which has plants in Gujarat and Haryana, is India’s biggest carmaker, accounting for around half of new vehicles sold in the country.
The company is aiming to increase its competitiveness by strengthening its EV production and expanding its product lineup in the local market, where other automakers are selling EVs in the 1 million yen range after subsidies. Suzuki also plans to allocate 1 trillion yen for research and development on hybrid vehicles and other forms of automotive electrification over five years from fiscal 2021.