Suzuki's Push for Maruti's EV Drive with Rs 10,000 Crore

Maruti Suzuki, India's largest manufacturer, is preparing to unleash major investments and new automobiles in the electric vehicle area, with its Japanese parent Suzuki pledging Rs 10,440 crore for zero-emission vehicles and batteries after being a late mover in the green mobility space.

Investments will be made at Suzuki's Gujarat Facility

The investments will be made at Suzuki's Gujarat facility, which recently received incentives under the government's production-linked incentive scheme and is expected to build automobiles and batteries for Maruti Suzuki as well as Toyota, Suzuki's Indian alliance partner.

Maruti, which is at least 2 years away from releasing its first mainstream electric car, wants to compete with Tata Motors and M&M, as well as Hyundai and Kia.

VG Ramakrishnan, a managing partner of Avanteum Partners LLB, remarked, "Suzuki has ability in producing tiny automobiles." "India is the only country in the world where little automobiles can be profitable. Suzuki may sell tiny electric cars to Maruti Suzuki, Toyota, and other markets throughout the world if it invests in developing and manufacturing them in Gujarat."

Maruti Suzuki has stated that it plans to launch its first electric vehicle in India by 2025. SMG, which has been approved by the government under the Rs 25,938 crore production-linked incentive plan, would initially build these cars.

Suzuki's Electric Vehicle Intentions Revealed

Suzuki's electric vehicle intentions were revealed during Japanese Prime Minister Fumio Kishida's visit to India, with the business signing an MoU with Gujarat, which is in the midst of an election season. The battery factory would receive the largest portion of the new funding, with an investment of Rs 7,300 crore and a production target of 2026. EVs would receive Rs 3,100 crore in funding, with a manufacturing target of 2025. Maruti Suzuki Toyotsu, a car disassembly and scrapping joint venture with Suzuki and Toyota Tsusho, would also spend Rs 45 crore in a factory.

Maruti Suzuki MD and CEO Kenichi Ayukawa had told that the business will focus on substantial national integration of green technology and equipment while developing EVs to mainstream the automobiles in terms of cost and volume.