INDIA REPORT
The development work has already been started on a project codenamed YY8 planned for 2024-2025.
Source: Economic Times. Read The Article
Major auto players in India like Tata Motors, MG Motors and Hyundai have already announced their investment plans in the electric vehicles sector, there wasn’t any formal announcement from Maruti Suzuki, India’s largest automaker. But now, the penny has dropped.
Suzuki Motor, parent of Maruti Suzuki, says it has signed a Memoranda of Understanding (MoU) with the Gujarat State government, and plans to invest Rs 10,440 crore in there to build an EV and battery factory. The MoU was signed at the India-Japan Economic Forum held in New Delhi.
“Suzuki’s future mission is to achieve carbon neutrality with small cars,” said Toshihiro Suzuki, President, Suzuki Motor Corporation. “We will continue active investment in India to realize self-reliant India (Atma-nirbhar Bharat).”
PSR Analysis: Under the plan, Suzuki Motor Corporation’s wholly-owned company Suzuki Motor Gujarat Pvt Ltd (SMG) will invest Rs7,300 crore for the construction of a battery plant near SMG’s automobile manufacturing unit by 2026. SMG will invest another Rs3,100 crore for ramping up production capacity for electric vehicles by 2025. The company is expected to launch its first electric vehicle by 2025.
The move is significant since the carmaker has been struggling for several years in retaining its dominance largely as a result of missing the bus when it comes to moving into India’s fast growing SUV segment.
Through the course of this financial year, Maruti Suzuki has seen its market share dwindle; the company now holds about 43% of the market, down from about 50% in recent years. In contrast, Kia Motors and Tata Motors have significantly improved their market share. PSR
Aditya Kondejkar is Research Analyst – South Asia Operations, for Power Systems Research
