Japanese auto maker Suzuki Motors Corporation will invest Rs 70,000 crore in its largest market – India – over the next 5-6 years. The investment plan comes as the Suzuki has choosen India as a hub for global EV production.
“Suzuki will invest over 70 thousand crore rupees in India, over the next 5 to 6 year,” Toshihiro Suzuki, Representative Director & President of Suzuki Motor said at an event on Tuesday to mark the start of production of its battery electric vehicle.
India is the largest market for Suzuki, with the country accounting for over 61% of total output in the previous financial year and 57% of its total global sales. Maruti Suzuki on Tuesday started production of its first electric vehicle- eVitara from its Hansalpur facility in Gujarat.
The automaker has set an target of producing 67,000 units of electric vehicles in financial year 2026 with exports planned to over 100 countries. Bulk of this this volume will go for exports.
e-Vitara, which was unveiled in Bharat Mobility Gobal Expo last year, is the first among the four battery electric vehicles planned to be launched by end of this decade.
Maruti Suzuki last year said it is aims to be the largest electric car maker in India in the first year of production. Unlike many other OEMs, Maruti Suzuki has been focused on a multi-fuel approach towards decarbonization.
The strategy includes models across multiple fuel types -battery electric, hybrid, CNG and flex-fuel – tailored to each region’s specific needs.
The largest contributor to Maruti Suzuki’s powertrain mix by FY31 is expected to be CNG models, including compressed biogas, with a share of 35%. This reflects the robust uptake of CNG cars in the cost-conscious Indian market. Traditional internal combustion engines and hybrid vehicles are each expected to contribute 25% to the powertrain mix.
The existing Gujarat plant, which can produce 750,000 cars per annum across three production lines, was recently acquired by Maruti Suzuki from Suzuki Motor Corp. Maruti Suzuki has also announced its plans to almost double production capacity to 4 million cars by the end of this decade.
The Indian subsidiary currently has an annual production capacity of around 2.5 million cars across three plants – two in Haryana (Gurugram and Manesar) and the Gujarat plant. Recently, Maruti Suzuki has production at it new greenfield plant in Kharkhoda, Haryana, with an initial capacity of 250,000 units, while another greenfield plants is being planned in Gujarat.