According to its president, Suzuki Motor Corp. will establish a worldwide research and development organisation in India, foraying further into a region that the Japanese automaker expects to turn into a centre for electric vehicles (EVs).
Toshihiro Suzuki stated at an event in Gandhinagar, the capital of western Gujarat state, that the new firm, a fully owned subsidiary of Suzuki Japan, will increase the automaker’s R&D competitiveness and capabilities in India and other international markets.
“India has become one of the most important countries for Suzuki Group,” he said, adding that Suzuki would keep investing heavily in the country.
At its factory in Gujarat, Suzuki, which now manufactures combustion engine automobiles in India for its domestic subsidiary Maruti Suzuki and export, will begin building EVs in 2025. Additionally, it is establishing a second facility in the state to start producing EV batteries in 2026.
One of Suzuki’s largest battery and EV expenditures internationally, the Japanese automaker has stated it will spend more than 104 billion rupees ($1.3 billion) on its electrification aspirations in India. It has already made 650 billion rupees in investments in the nation.
“India plays a significant role as a global automobile production hub in Suzuki Group,” Suzuki said.
Suzuki also collaborates with Japanese companies Denso Corp. and Toshiba Corp. to produce lithium-ion batteries for hybrid cars for both domestic and international markets.
Maruti, which dominates the Indian auto market with its compact, inexpensive cars, is majority owned by Suzuki. However, as consumers switch to larger vehicles like SUVs and regulators demand safer and greener automobiles, the company is facing greater competition.
By providing corporations with billions of dollars in incentives, India is also encouraging automakers to produce more electric vehicles. EVs, according to Indian Prime Minister Narendra Modi, are causing “a silent revolution in the country,” and his administration is taking steps to increase both supply and demand for these eco-friendly automobiles.
“This silent revolution is set to bring major changes,” he told Sunday’s event, which marked 40 years of Suzuki’s partnership with Maruti.
The Suzuki EV battery manufacturing facility in Gujarat and the Maruti vehicle manufacturing site in the northern state of Haryana both had their foundations officially laid by Modi.
Maruti sees electrification as a hurdle since it wants New Delhi to encourage all cleaner technologies, including ethanol and hybrid, instead of only EVs, which it only plans to introduce in 2025.
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