Japan’s Suzuki Motor will invest 700 billion rupees ($8 billion) in India over the next six years, as it begins producing its first electric vehicle (EV) in the country, Chairman Toshihiro Suzuki said on Tuesday.
The investment will cement India’s role as Suzuki’s biggest market and position it as a global hub for electric car exports. The company plans to ship EVs to more than 100 countries, including Japan and key European markets.
“India will be at the centre of Suzuki’s EV journey,” Chairman Suzuki said at the Gujarat plant, where production of the company’s first electric SUV, the e-Vitara, has begun. The model will compete with Hyundai’s Creta and Mahindra’s XEV 9e in the fast-growing mid-size SUV segment.
Prime Minister Narendra Modi, who attended the launch, called the development a “big leap” towards the country’s Make in India manufacturing campaign. “Maruti is proof of the strong business and personal ties between India and Japan,” Modi said, urging Indians to buy more locally made products.
The Gujarat plant, which is being expanded to produce 1 million cars annually, will be among the world’s largest automobile factories. Suzuki’s push comes despite a slowdown in global EV sales, as the company seeks to protect its dominance in India, the world’s third-largest car market by sales.
Maruti Suzuki, the automaker’s Indian subsidiary, already accounts for about 40% of passenger vehicle sales in the country. With the launch of its first EV, it aims to stay ahead of rivals like Hyundai and Mahindra, both accelerating their electric strategies.
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