While major auto players in India now like Tata Motors and Hyundai have already announced their investment plans in the emerging EV (electric vehicles) sector, there was no formal announcement from the India's largest automaker Maruti Suzuki. To be sure, there were reports about its impending EVs, but nothing as such major about its assembly line.
And now, the penny has dropped. Suzuki Motor, the parent of Maruti Suzuki, has announced that it would invest Rs 10,440 crore in Gujarat to build a new electric car and battery factory in India. The company has signed an MoU with the Gujarat State government. The MoU was signed at the India-Japan Economic Forum held in New Delhi in the presence of Japanese Prime Minister Fumio Kishida and Indian Prime Minister Narendra Modi, the company said in a statement.
Over Rs 7000 crore for battery unit
Toshihiro Suzuki, Representative Director and President, Suzuki Motor Corporation said, "Suzuki's future mission is to achieve carbon neutrality with small cars." He added: "We will continue active investment in India to realize self-reliant India (Atma-nirbhar Bharat)."
Maruti Suzuki is expecting to roll out affordable EV models in both Japan and India as early as 2025.
Suzuki's investment is likely split as: Rs 3,000 crore for production of electric vehicles, and Rs 7,300 crore to make electric batteries.
The new plant will be set up near the existing Suzuki’s plant in Gujarat. The plant is owned by Suzuki Motor Gujarat (SMG), a 100% subsidiary of Suzuki Motor Corporation and supplies to Maruti.
Suzuki has already developed a Lithium-Ion battery pack production unit in a joint venture with Japanese companies Denso Corp and Toshiba at Hansalpur in Gujarat. The manufacturing is set to start by this year.
Further, another group firm Maruti Suzuki Toyotsu India will invest Rs 45 crore in construction of vehicle recycling plant by 2025.
Maruti will likely aim for an EV at around Rs 10 lakh
For the record, Suzuki already has a global understanding with Toyota and has unveiled plans to enter the non-IC engine vehicle business in India.
Maruti Suzuki had previously scrapped plans to launch EVs in 2020 due to lack of infrastructure and government support.
Maruti's arch rivals in India, Hyundai and Tata Motors, have already firmed up their EV plans. So in that sense, Maruti is a bit late late in getting on to the bandwagon. But it may not have a major impact as the EVs market is just about evolving in India.
But with Maruti entering the market, cheaper electric cars can be expected as the company usually aims its offerings for the middle-class.
The highest selling electric vehicle Tata Nexon currently starts around Rs 14 lakh. Now you can expect Maruti to aim for something around Rs 10 lakh, which for an EV in India will be highly competitive.
