Japanese automaker Suzuki Motor Corporation said on Sunday that it will invest about 150 billion yen (about Rs 10,445 crore) in local production of Battery Electric Vehicles (BV) and BEV batteries in Gujarat by 2026.
To this end, the company has signed a Memorandum of Understanding (MoU) with the government of Gujarat.
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It was signed “on March 19, 2022 at the India-Japan Economic Forum in New Delhi, India, in the presence of Japanese Prime Minister Fumio Kishida and Indian Prime Minister Narendra Modi,” Suzuki Motor Corporation said in a statement.
Speaking at the forum, Toshihiro Suzuki, managing director and president of Suzuki Motor Corporation (SMC), said “Suzuki’s future mission is to achieve carbon neutrality with small cars.
We will continue to actively invest in India to achieve Self-sufficient India (Atma-nirbhar Bharat).”
Under the MoU, Suzuki Motor Gujarat Pvt Ltd (SMG), the wholly-owned subsidiary of the company, will invest Rs 7,300 crore by 2026 in the construction of a BEV battery plant on a site adjacent to SMG’s existing plant. .
Also, SMG will invest another Rs 3,100 crore for increasing production capacity for BEV production by 2025, the statement said.
Currently, the Suzuki group for the manufacture of conventional combustion engine vehicles has a cumulative production capacity of about 22 lakh units per year at two sites of its main subsidiary, Maruti Suzuki India (MSI) in Haryana, along with SMG’s facility in Gujarat.
The production capacity of MSI at Gurgaon and Manesar factories in Haryana is about 15 lakh units per year.
SMG, which exclusively supplies vehicles to MSI, has an additional installed production capacity of 7.5 lakh units per year.
In the statement, SMC further said that another group company Maruti Suzuki Toyotsu India Pvt Ltd (MSTI) will make an investment of Rs 45 crore in the construction of a car recycling plant by 2025.
Last year in November, MSTI – the joint venture between the Maruti Suzuki and Toyota Tsusho Group – started operations of the car dismantling and recycling unit in Noida, in
Uttar Pradesh. Spread over 10,993 square meters, the facility has the capacity to scrap and recycle more than 24,000 ELVs (end-of-life vehicles) annually.
In November 2019, the two partners had announced a joint venture to set up the car demolition and recycling unit.
The Indian branch of SMC, Maruti Suzuki, plans to enter the electric vehicle segment by 2025. The company, a leader in the mass-market segment, has maintained that it would be difficult to sell affordable EVs on a large scale at today’s prices.
Maruti Suzuki had previously tested an electric vehicle based on its WagonR in 2019 with plans to launch in 2020, but decided against a commercial launch for personal use due to a lack of infrastructure and government support.
On Saturday, Japanese Prime Minister Fumio Kishida announced an investment target of five trillion yen (Rs 3.20,000 crore) in India over the next five years as the two sides entered into a series of agreements and partnerships to develop their special strategic and global partnership.
The two countries also announced a Clean Energy Partnership (CEP) for cooperation in areas such as electric vehicles, storage systems including batteries, electric vehicle charging infrastructure, solar energy development; hydrogen and ammonia.
“The aim is to encourage manufacturing in India, create resilient and reliable supply chains in these areas and promote R&D cooperation. It will be implemented through the existing energy dialogue mechanism,” a joint statement said.
This post Suzuki invests Rs 10,445 cr for local production of electric vehicles, batteries in Gujarat
was original published at “https://www.zeebiz.com/automobile/news-suzuki-to-invest-rs-10445-cr-for-local-manufacturing-of-electric-vehicles-batteries-in-gujarat-181187”
