New Delhi: In a big move, Suzuki Motor Corporation (SMC) has signed an MOU with the State of Gujarat, India to invest approximately 150 billion yen (approximately 104.4 billion rupees) for local manufacturing of electric vehicles (BEV) and BEV batteries.
The MOU was signed on 19 March 2022 at India-Japan Economic Forum held in New Delhi, India, in the presence of Japanese Prime Minister Fumio Kishida and Indian Prime Minister Narendra Modi. The planned investments would be to enable Suzuki to make electric cars and batteries in India at a larger scale.
The outline of the MOU includes BEV manufacture and battery manufacture by 2025 and 2026. The MOU also contains construction of a vehicle recycling plant by Maruti Suzuki Toyotsu India Private Limited (MSTI). One of the first products to come out from this new local manufacturing strategy would be the midsize EV SUV that Toyota and Suzuki are planning.
The electric midsize SUV would rival the Hyundai Creta, a segment above the current Vitara Brezza plus having an electric platform. This would be the start of a new series of electrification from both Toyota and Maruti Suzuki in India.
The cars would also be built for exports and would have a large production capacity.
The first EV would be launched in 2025 end/2026 and would be made at this plant while the battery manufacturing will further enable the SUVs to be priced aggressively. The Gujarat plant would be the future hub for export and making electric cars in the future including probable subcompact EVs and other types of cars with this platform.
The electric car segment will further increase in the few years and Suzuki/Toyota launching its electric SUV would no doubt be one of the biggest launches.
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