Japanese automaker Suzuki has signed a Memorandum of Understanding with the State of Gujarat, India to invest 150 billion Yen (around £950 million) to locally manufacture electric vehicles and batteries.
The MoU was signed late last week at the India-Japan Economic Forum in New Delhi, India with both the Japanese and Indian Prime Ministers present.
Suzuki will invest 31 billion rupees (around £309 million) to increase production capacity for BEV manufacturing by 2025.
In the same timeframe, its Indian subsidiary, Maruti Suzuki Toyotsu (MSTI), will also invest 450 million rupees (around £4.8 million) to build a vehicle recycling facility.
A year later, Suzuki will put a further 73 billion rupees (around £730 million) into the construction of a battery plant.
The investment is part of Japan’s five trillion yen (£32 billion) investment in India over the next five years as the two countries look to strengthen economic ties.
Speaking at the Forum, Mr. Toshihiro Suzuki, representative director and president of Suzuki, said: “Suzuki's future mission is to achieve carbon neutrality with small cars.”
He added: “We will continue active investment in India to realise Self-reliant India Atma-nirbhar Bharat).”