Maruti Will Manufacture Electric Cars In India; Commits Rs 3900 Crore Investment in Gujarat
They will now manufacture electric cars in India
This is one of those watershed moments for the electric and fuel-less automobile industry of India.
Maruti-Suzuki, which single-handedly commands more than 50% market share in 4-wheeler segment, has just announced their commitment and determination towards making electric vehicles popular in India.
They have declared that they will now manufacture electric cars in India, and have committed an investment of Rs 3.9k crore. Besides, they will also establish India’s first lithium-ion battery factory in India, which will solve the problem of electric power, for automobiles.
Starting today, the electric car movement has received a new boost of energy, literally.
Maruti: We Will Manufacture Electric Cars In India
The moment of this announcement was perfect. Suzuki chairman Osamu Suzuki was present at the function, where PM Modi and Japanese PM Shinzo Abe were also present. A day earlier, they had announced the launch of India’s first bullet train at an expenditure of Rs 1 lakh crore, and the enthusiasm was high.
In this event, Osamu Suzuki announced that Maruti will now manufacture electric cars in India, thereby igniting the electric vehicle movement in the country.
The manufacturing would be done by Maruti Suzuki India Limited, which is 56.21%-owned subsidiary of Japanese automobile and motorcycle manufacturer Suzuki Motor Corporation. As of January 2017, they had a market share of 51% in India.
Mahindra Electric is the only electric car manufacturer in India currently, and they sell E2o and eVerito cars.
Suzuki announced that their third manufacturing unit in India would be dedicated towards electric cars, and would be established in Hansalpur, Gujarat, at a cost of Rs 3900 crore. With this, total investment by Suzuki in India would become Rs 13,400 crore.
This new plant would have manufacturing capability of 2.5 lakh cars, and the cars would be exported as well, besides being sold in India.
Maruti Will Establish India’s 1st Lithium-Ion Battery Unit
Besides, Maruti in association and partnership with Toshiba and Denso will establish India’s first ever lithium-ion battery factory, in Gujarat.
For this, Maruti has committed an investment of Rs 1150 crore.
While Suzuki will hold 40% stake in this new venture, Toshiba will have 40% and Denso 10% stake.
After the manufacturing starts, this new lithium-ion battery unit will create a major hub for batteries in South-East Asia, powering electric vehicles sales, and hybrid cars as well.
Highlighting the importance of Make in India initiatives, Suzuki said, “Maruti Suzuki will be the biggest user … and (if) those components for these technologies are made in India and then exported – as we would like to grow the economies of scale and bring down the cost – then Make in India becomes a reality,”
Govt of India has already declared that they will replace every petrol/diesel vehicle with electric vehicle by 2022. As per the Govt.’s plans, around 70 lakh new electric vehicles would be on the road by 2022, as major incentives and subsidy program has been arranged.
Now, Maruti, which sells one out of two cars in India, also jumping into the electric vehicle mission, we can soon witness a major revolution in this sector.
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