Maruti Suzuki sign Memorandum of Understanding with Gujarat to invest in EV technology
Is Maruti Suzuki finally getting serious about the emergence of electric vehicles in India? At the recent India-Japan Economic Forum held in New Delhi, India, Suzuki Motor Corporation (SMC), the parent company of Maruti Suzuki India Limited, signed a Memorandum of Understanding with the state of Gujarat to invest in various spheres of electric vehicle technology and production. The total amount of investment will come up to ₹10,440 crores, a massive statement of intent that shows Maruti Suzuki may finally be warming up to the small but rapidly growing electric vehicle market in India dominated by Tata.
The specifics of how this investment would be executed were also detailed by the company. Suzuki Motor Corporation will helm two projects. It will increase the current capacity for the production of battery electric vehicles with an investment of ₹3100 crores and which will be finished by 2025. It will also construct a plant that will build batteries for BEVs, at a cost of ₹7300 crores, which is scheduled to be completed by 2026. Maruti Suzuki India meanwhile will undertake the project to construct a vehicle recycling plant, in line with the scrappage policy introduced by the Government recently, at a cost of ₹45 crores and has set a date in 2025 for its completion.
The event was attended by Japanese Prime Minister Furnia Kishida and Indian Prime Minister Narendra Modi. Also present were the Director and President of Suzuki Motor Corporation, Toshihiro Suzuki and Managing Director & CEO of Maruti Suzuki India Limited, Kenichi Ayukawa.
Speaking at the event, Mr 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).”
This comes as welcome news for the Indian automotive community, and especially admirers of electric vehicles, as Maruti Suzuki has thus far been tepid in its response to the growing interest in that market. Meanwhile, Tata and Mahindra have made major investments in their electric vehicle plans. Stay tuned to evo India for more news on electric vehicles and mobility!