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.
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.
#MarketsWithMC: Maruti Suzuki India share price jumped 3% in the morning session today after Japan's Suzuki plans to invest $1.4 billion for EVs at India factory.
— Moneycontrol (@moneycontrolcom) March 21, 2022
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.
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