Suzuki has signed a Memorandum of Understanding with the Indian State of Gujarat to invest 150 billion Yen (around £950 million) to build electric vehicles and batteries.
The MoU was signed late last week with both the Japanese and Indian Prime Ministers present.
The new MoU is Suzuki’s first major EV plan for India and comes as part of a national strategy to reduce oil dependence and cut air pollution in major cities.
“Suzuki’s future mission is to achieve carbon neutrality with small cars,” said Toshihiro Suzuki, the company’s Representative Director and President.
“We will continue active investment in India to realise ‘Self-reliant India.'”
The company will invest 31 billion rupees (around £309 million) by 2025 to increase production capacity for battery electric vehicle manufacturing, while its Indian subsidiary will invest 450 million rupees (around £4.5 million) to build a vehicle recycling plant.
A year later, Suzuki will invest 73 billion (around £730 million) to create a plant to build battery electric vehicles.
The investment is part of Japan’s 5 trillion yen (£32 billion) investment in India over the next five years. The two countries are looking to strengthen their security and improve economic ties following the outbreak of the conflict in Ukraine.
Japan has also helped India build urban infrastructure and a new high-speed railway based on its iconic bullet trains.
