Japanese automaker Suzuki Motor Corp. is planning to invest around USD 1.26 billion in India to step up production of electric vehicles and build a new plant for car batteries. Suzuki, India's biggest carmaker, already has plants in states like Gujarat and Haryana. It accounts for around half of new vehicles sold in the country.
This latest decision is in line with efforts by the Indian government to reduce greenhouse gas emissions, Kyodo News agency reported citing sources close to the matter. The production of EVs is scheduled to begin by 2025 at one of the company's existing plants.
The Japanese agency said Suzuki is aiming to increase its competitiveness by strengthening EV production and expanding its product lineup in the local market. Moreover, the automaker also plans to allocate 1 trillion yen for research and development on hybrid vehicles and other forms of automotive electrification over five years from fiscal 2021.