Japanese automaker Suzuki Motor is set to produce electric vehicles (EVs) in India and establish the country as an export hub for EVs, according to a report by Nikkei published on Wednesday.
Suzuki Motor is looking to expedite the global development of electric cars and has ambitious plans for EV production in India. The company intends to export EVs manufactured in India to Japan as early as 2025. Furthermore, it plans to introduce EVs to the European market under its own brand.
Additionally, Suzuki is considering a partnership with Toyota Motor to supply EVs for sale in Europe. If this collaboration comes to fruition, the electric vehicles will be marketed under the Toyota brand in Europe.
The choice of India as Suzuki’s initial EV production hub is motivated by several factors. The vast potential of the Indian domestic market, coupled with lower manufacturing costs, makes it an attractive location for producing EVs.
The report states that Suzuki will establish a new EV production line in the western Indian state of Gujarat. Its Indian subsidiary, Maruti Suzuki, is scheduled to commence production in the fall of 2024. The company plans to export small SUVs, priced at approximately 3 million yen ($20,000) to 4 million yen.
In addition to EVs, the production line will also manufacture gasoline-powered vehicles. It is expected to have a capacity of 250,000 units per year.
Suzuki’s long-term plans include manufacturing electric kei cars in Japan starting from 2026. These lightweight minicars are known for their affordability and ease of use due to their compact size.
In September, Suzuki Motor Corp announced a partnership with the National Dairy Development Board (NDDB) and Gujarat-based Banas Dairy to establish four biogas plants in Gujarat, with an investment of approximately ₹230 crore. This move signifies Suzuki’s commitment to sustainable and environmentally friendly practices.