Suzuki Motor Corp plans to invest about 150 billion yen (1.26 billion US dollars) in its main market in India to increase production of electric vehicles (EVs), and build a new factory for car batteries.
According to a report from Kyodo on Sunday, the Japanese automaker’s move is in line with the Indian government’s efforts to reduce greenhouse gas emissions amid a global trend toward decarbonisation.
EV production in India is slated to start in 2025 at one of Suzuki’s existing factories, with operation of a new plant to produce automotive batteries set to begin around the same time.
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Suzuki, which has factories in Gujarat and Haryana, is India’s largest automaker, accounting for about half of new vehicles sold in the country.
The company aims to increase its competitiveness by strengthening EV production and expanding its product range in the local market, where other automakers sell EVs in the 1 million yen range after subsidies.
Suzuki also plans to allocate 1 trillion yen for research and development of hybrid vehicles and other forms of automotive electrification over the five years of the 2021 fiscal year.