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Monday, April 15, 2024

Suzuki invests $1.4 billion for EVs in India, why not Pakistan?

Suzuki has the largest market share in automobile industry of Pakistan. In India, Suzuki is aligning with a national strategy to reduce oil dependence and cut air pollution. But the Japanese company is reluctant to introduce EVs in Pakistan.

Suzuki Motor (7269.T) plans to invest 104.4 billion rupees ($1.37 billion) in its India factory to produce electric vehicles (EVs) and batteries, Maruti Suzuki India (MRTI.NS), majority-owned by the Japanese carmaker, said on Sunday.

It is the first major EV plan announced by Maruti Suzuki for India in a bid to align itself with a national strategy to reduce oil dependence and cut debilitating air pollution in major cities.

Japanese Prime Minister Fumio Kishida on Saturday announced a 5 trillion yen ($42 billion) investment in India over the next five years during a meeting with Prime Minister Narendra Modi in New Delhi.

Read more: Toyota and Suzuki join hands to launch electric vehicles in India  

The two leaders were meeting to strengthen security amid the Ukraine crisis and improve economic ties between the two nations. Japan in recent years has supported India’s urban infrastructure development and the high-speed railway based on its bullet train technology.

In 2014, then-Japanese Prime Minister Shinzo Abe announced 3.5 trillion yen in investment and financing over five years during a visit to India.

Suzuki Motor Gujarat Private will invest 31 billion rupees by 2025 for increasing production capacity for battery EV manufacturing and 73 billion rupees for construction of plant vehicle batteries, the company said.

“Suzuki’s future mission is to achieve carbon neutrality with small cars,” said Suzuki Motor president Toshihiro Suzuki.

Read more: In a first, India rolls out electric bus to curb air pollution

Tata Motors (TAMO.NS) is the largest seller of electric cars in India, with rival Mahindra & Mahindra (MAHM.NS) and motor-bike maker TVS Motor (TVSM.NS) firming up their EV plans.

Reuters with additional input by GVS News Desk