Suzuki Motor Corporation (SMC), a Japanese automaker, has struck an agreement with Gujarat to manufacture electric vehicles and batteries, with a proposed investment of Rs 10,445 crore.
“Suzuki Motor Corporation (SMC) signed MoU with the State of Gujarat, India to invest approximately 150 billion yen (approximately 104.4 billion rupees) for local manufacturing of electric vehicles (BEV) and BEV batteries,” the company said in a statement.
According to the MoU, Suzuki Motor Gujarat Pvt Ltd (SMG) would invest Rs 10,400 crore in enhancing BEV manufacturing capacity and building a BEV battery factory. MSTI (Maruti Suzuki Toyota India Pvt Ltd) plans to invest Rs 45 crore in a car recycling factory. The investments will be made in the years 2025 and 2026. Suzuki Motor Gujarat Pvt Ltd and Maruti Suzuki India Ltd are two of the firms chosen for the production-linked incentive (PLI) plan for the car industry.
Hyundai, Tata Motors, and M&M are among the major car giants participating in the initiative. The plan provides auto businesses with incentives of up to 18% of the assessed sales value to encourage them to engage in the indigenous supply chain of Advanced Automotive Technology (AAT) goods. Suzuki stated in a statement that SMC’s EV MoU was signed in the presence of Japanese Prime Minister Fumio Kishida and Indian Prime Minister Narendra Modi at the India-Japan Economic Forum in New Delhi on March 19, 2022. Senior government officials from India and Japan joined Toshihiro Suzuki, Representative Director and President, Suzuki Motor Corporation, and Kenichi Ayukawa, Managing Director and CEO, Maruti Suzuki India Ltd, during the ceremony, according to the firm.
Speaking at the Forum, 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),” he added.
