Suzuki Motor Corporation signed a Memorandum of Understanding (MOU) with the State of Gujarat, India to invest in local manufacturing of electric vehicles and EV batteries.
The Japanese company is interested in spending approximately 150 billion yen (approximately 104.4 billion rupees or $1.24 billion) in the next few years.
The plan includes:
- Increasing production capacity for BEV manufacturing at Suzuki Motor Gujarat Private Limited (SMG) by 2025
- Build a battery plant (land neighboring to SMG)
In the case of Suzuki, the main topic is the electrification of small electric cars. The company has more than a 50% market share (passenger car segment) in India, which also means that Suzuki’s electrification efforts will be significant to the entire EV segment.
Speaking at the Forum, Mr. Toshihiro 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).”
According to the mid-term management plan, released in 2021, Suzuki is finally shifting towards electric vehicles. In the case of full-size cars, the company is expected to rely on its alliance with Toyota.
One of the examples is the plug-in hybrid Suzuki Across PHEV (launched in Europe), which is, in fact, a rebadged Toyota RAV4 Prime.
Only time will tell how well the electrification in India will progress, but from our perspective, it’s a big opportunity to develop an entry-level all-electric model for India and potentially for export. Let’s not forget how well the Wuling EVs sell in China or the Dacia Spring in Europe (imported from China).
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