Indian PM Narendra Modi & Japanese PM Fumio Kishida Discussed $1.3 Billion Investment For EV Production In India

EV Ultimo Team


Indian PM Narendra Modi & Japanese PM Fumio Kishida Discussed $1.3 Billion Investment For EV Production In India

Japanese automobile major Suzuki Motor Corporation (SMC) has declared it would invest about 150 billion yen (approximately ₹10,440 crore) by 2026 for local manufacturing of electric vehicles (BEV) and BEV batteries in India. “Geopolitical developments are presenting a new set of challenges. In this context, the deepening of India-Japan partnership is not only important for the two countries, but also for the Indo-Pacific region and will encourage peace, prosperity and stability for the world,” Indian Prime Minister Narendra Modi said, adding that Japanese PM Fumio Kishida and he also exchanged views on regional and global issues.

The company said it had signed a memorandum of understanding (MoU) with the Gujarat government for the same. “The MoU was signed on March 19, 2022, at the India-Japan Economic Forum held in New Delhi, India, in the presence of Japanese Prime Minister Fumio Kishida and Indian Prime Minister Narendra Modi,” it added. 

“Suzuki's future mission is to achieve carbon neutrality with small cars,” Toshihiro Suzuki, Representative Director and President, Suzuki Motor Corporation, said, adding that the company would continue active investment in India to “realise self-reliant India [Atma-nirbhar Bharat]”. As part of the MoU, Suzuki Motor Gujarat (SMG), which is a wholly owned subsidiary of the SMC, will invest ₹3,100 crore by 2025 for increasing production capacity for BEV manufacturing and ₹7,300 crore by 2026 for construction of plant for BEV batteries (land neighbouring to the SMG).

“They expressed satisfaction that the investment target of JPY (Japanese Yen) 3.5 trillion announced in 2014 has been achieved. Noting steps taken by India to improve the business environment for Japanese investors in India, as well as other measures to boost economic growth and improve ease of doing business, they expressed their shared intention to realize JPY 5 trillion of public and private investment and financing from Japan to India in the next five years, to finance appropriate public and private projects of mutual interest,” the MoU said. The two sides signed pacts on cyber security and announced a clean energy partnership. They also signed pacts on loans to the tune of ₹ 20,400 crore for projects in connectivity, water supply and sewerage, horticulture, healthcare, and biodiversity conservation in different states.

Additionally, Maruti Suzuki Toyotsu India — a joint venture between Maruti Suzuki India and Japan-based Toyota Tsusho Group, will invest ₹45 crore for construction of vehicle recycling plant by 2025.