Japanese company Suzuki Motor has decided to make electric cars at its factory in Gujarat to sell across India and the world. It will become the first commercially-available electric car for Suzuki. Suzuki, Maruti's parent company, it will use India as a key global manufacturing base. Chairman Osamu Suzuki who was present at a business leaders' meet last week, said, “For the last 35 years, we have been working towards 'Make in India' with you all.”
The company will also put in a fresh $600 million in the state for a new plant at Hansalpur with a capacity of 2,50,000 units. Suzuki will also increase investments in the state to over $2.1 billion as it moves to boost annual manufacturing capacity in Gujarat to 7,50,000 units in the next couple of years. Production for plant A- with a capacity for 2,50,000 units annually, has already begun and is being used to manufacture one of its best-selling cars Baleno. Work for plant B is under progress and has a production target set for 2019. The company will also set up a combustion-engine plant at the facility for 5,00,000 units.
Also, a lithium-ion battery factory that will charge electric, hybrid, and other vehicles from the company's stable, will be set up. Toyota company Denso will provide the technology, while Toshiba will chip in with cell modules. The three companies together will invest $180 million for the plant, which will be operational by 2020. The batteries are expected to be used to power Maruti and Suzuki's electric vehicles, some of which could be all-new ones, while others will be clean fuel variants of existing petrol/diesel models.
Mahindra and Ford sign pact for electric vehicles
In another development, Mahindra Group and Ford Motor agreed to explore a strategic alliance, designed to leverage each other's strength in areas such as mobility, connected vehicles, electric vehicles product development and distribution within India and abroad. The companies said that they aim to gain from the "benefits of Ford's global reach and expertise and Mahindra's scale in India and successful operating model". The agreement, they said, would allow each to leverage their mutual strengths "during a period of unprecedented transformation in the global automotive industry."
