Suzuki Motor Corporation, Japan (SMC) has announced the following –
- At Suzuki’s existing facility in Gujarat
- Rs 7,300 crore to set up a EV Battery manufacturing facility by 2026
- Rs 3,100 crore towards increasing the manufacturing capacity of EVs by 2025
Key points to note –
- SMC owns 56.37% of Maruti Suzuki India (MSI).
- MSI has long maintained it’s concerns around the EV potential in India primarily due to the lack of adequate charging infrastructure and significantly higher costs of EVs vs traditional fuel vehicles.
- MSI has been more bullish on CNG vehicles as compared to EVs.
- SMC’s investment doesn’t necessarily mean changed outlook by MSI. SMC can very well utilise the EV facilities for exports and/ or supplying to other manufacturers (including Toyota) in India.
- However, SMC’s investment would potentially ensure a more smooth shift by MSI towards EVs if and when it decides to go more aggressive.