Suzuki Motor [7269:JP] announced a USD1.37bn investment plan to increase its electric vehicle (EV) and battery manufacturing capacity in India through its local unit, Maruti Suzuki India [MSIL:IN], as reported by Reuters on March 20. The plan includes an INR31bn (USD405.4m) investment to increase EV production capacity by 2025, as well as an INR73bn (USD954.7m) investment to develop a battery facility. The firm faces competition from India’s native EV manufacturers such as Tata Motors [TAMO:IN], the largest seller of electric cars in the country, as well as Mahindra & Mahindra [MAHM:IN] and TVS Motor [TVSM:IN].
Suzuki Motor’s president Toshihiro Suzuki said the firm seeks carbon neutrality through its small car business. The Japanese company previously stated that it will focus on creating new energy vehicles (NEVs) in the next five years, with goals to raise new car sales by 56% by March 2026. Suzuki expects to sell 3.7m vehicles worldwide by March 2026, with sales in Asia increasing by 81% to 2.5m units and sales in Japan increasing by 17% to 750,000 units. On March 19, Japanese Prime Minister Fumio Kishida announced plans to spend USD42bn in India over the next five years during his visit to the country, investing mostly in the automobile, electrical equipment, telecommunications, chemical, and pharmaceutical industries. Since 2000, Japan has invested around USD27.28bn in India.