Suzuki Motor Corp. will invest ¥700 billion ($8 billion) in India over the next five to six years as the Japanese automaker transforms the country into its global electric vehicle manufacturing base, Chairman Toshihiro Suzuki announced Tuesday.
The investment comes as Suzuki launched production of its first battery electric vehicle, the e-Vitara SUV, at its Hansalpur facility in Gujarat state. India will be the global production hub for Suzuki Motor’s electric cars, with plans to export vehicles to 100 countries, including back to Japan and markets in Europe, according to Nikkei reported.
The commitment represents Suzuki’s largest-ever investment in any single market as the automaker seeks to defend its dominant position in India, where it controls approximately 42% of the passenger vehicle market through its Maruti Suzuki subsidiary. However, that share has been under pressure from rivals including Hyundai, Tata Motors, and emerging electric vehicle manufacturers.
The investment will happen over a period of five to six years, Suzuki said in a speech Tuesday, without elaborating. The company plans to achieve production capacity of one million units at the Gujarat plant, making it one of the world’s largest automobile manufacturing hubs.
Suzuki’s electric vehicle entry comes as India’s EV market grows rapidly, with the government targeting 30% electric vehicle penetration by 2030. The e-Vitara will compete directly with established models from Hyundai and domestic manufacturers who have gained early traction in the electric segment.
