Suzuki Motor plans to establish India as its global production hub for electric vehicles (EVs), exporting them to markets including Japan and Europe, despite a global slowdown in EV sales, company President Toshihiro Suzuki said on Thursday. The decision highlights India’s strategic importance as Suzuki’s largest market by sales and revenue through its majority-owned subsidiary, Maruti Suzuki.
On Friday, Maruti Suzuki will debut its first electric vehicle, the e Vitara, a mid-sized SUV that will be exported globally and supplied to Suzuki’s partner, Toyota Motor. Speaking in New Delhi, Toshihiro Suzuki emphasized India’s role in the company’s EV strategy: “For Suzuki, the scale merit in India is our strength, and we will fully leverage this advantage to supply high-quality and appealing products across various markets such as Europe, Japan, Middle East, Africa, Central and South America.”
India’s EV market, while slowing in growth to 20% in 2024 from 115% the previous year, still outpaced the overall car market’s 4% growth. The government has set a goal for EVs to represent 30% of total car sales by 2030, up from the current 2.5% of the 4.3 million cars sold last year. Suzuki is addressing key challenges like vehicle range and limited charging infrastructure. “Globally, the EV market is sluggish, but I think in India there is a potential that EV sales are going to grow,” Toshihiro Suzuki said.
Suzuki also outlined plans to introduce smaller EVs once its technology and manufacturing processes are fully optimized, alongside investments in hybrid, gas, and hydrogen-powered vehicles. The automaker is investing over $4 billion to double its production capacity in India to 4 million units annually by 2031 and strengthen its model lineup.
Maruti Suzuki, long a dominant player in India’s car market with affordable compact vehicles, has seen its share dip to 40% from a peak of over 50% in 2020 due to increased competition from Hyundai Motor and Tata Motors, which have launched premium SUVs. Highlighting the importance of the Indian market, Toshihiro Suzuki said, “India has become the third-largest auto market, hence it is the focus of the entire world.” While he expressed ambitions to reclaim Maruti Suzuki’s 50% market share, no timeline was provided.