E-Vitara production starts: Suzuki Motors announces to invest $8 billion in India

As Suzuki Motor begins production of its first electric vehicle, the company plans to invest ₹700 billion ($8 billion) in India over the next 5–6 years, citing the company’s chairman, Reuters reported. 

The Japan-based company sees India as a global production hub for the company's electric cars, where it manufactures 17 models and exports to almost 100 countries, including back to Japan.

Maruti Suzuki's shares surged 2.6% to an all-time high after the announcement of the investment. The announcement came during a ceremony to commemorate the beginning of commercial production of the mid-sized "e Vitara" SUV at its Gujarat facility in the village of Hansalpur Becharaji.

According to RC Bhargava, the chairman of Maruti, the company will export between 50,000 and 100,000 EVs annually. He went on to say that due to the high cost of batteries, which would raise prices for budget-conscious local customers, there was currently no set date for a debut in India, the third-largest automobile market in the world, where Suzuki holds a dominant 40% market share.

The e-Vitara will face competition from Mahindra's XEV 9e and Hyundai's Creta.

Earlier this year, due to growing competition in the South Asian country and a global slowdown in EV sales, Suzuki Motor lowered its sales target in India, its largest market by both sales and income. In addition, the company also reduced its expectations for electric vehicles.

Since April 1, EV sales in India have continued to expand faster than the country's overall auto market, with electric vehicles making up roughly 4.5% of all automobiles sold in the current fiscal year. By 2030, the government is still aiming for a 30% share.

According to Toshihiro Suzuki, chairman and president of Suzuki Motor, with a projected capacity of one million vehicles, the Gujarat facility is expected to grow into one of the biggest auto production hubs in the world.