Suzuki Motor to invest $8 billion in India

Source Credit : Portfolio Prints

In a landmark move that underscores its long-term commitment to the Indian market, Suzuki Motor has unveiled plans to invest approximately ₹70,000 crore (roughly $8 billion) in India over the next five to six years. The announcement comes alongside the launch of its first battery-electric vehicle (BEV) in the country, marking the automaker’s electrified future.

Cementing India as a Global EV Hub

Suzuki’s Gujarat facility—operated under its majority-owned arm, Maruti Suzuki—is being positioned as a global manufacturing stronghold. With plans to scale annual production up to one million vehicles, the plant is set to become one of the world’s largest automotive hubs.

This facility has begun commercial production of the e-Vitara, a mid-sized electric SUV and Suzuki’s first mass-produced BEV, now rolling off the assembly lines in Hansalpur, Gujarat.

Exporting ‘Made-in-India’ Mobility

Suzuki plans to export the e-Vitara to over 100 countries, including key markets in Europe and its home market, Japan.

A Strategic Statement by Prime Minister Modi

Prime Minister Narendra Modi, attending the launch ceremony, described Suzuki’s move as a “big leap” in India’s Make in India initiative. He highlighted the importance of fostering domestic manufacturing for global exports and hailed the event as a milestone for India’s green mobility drive.

Broad-based Investment Strategy

The ₹70,000 crore investment spans several strategic areas:

• Capacity expansion & new model development: ₹32,000 crore earmarked for increasing production scale and launching four new BEV models by 2030.


• Sustainability & quality improvements: ₹15,000 crore dedicated to carbon-neutral initiatives and enhancing manufacturing quality.


• Localization of EV components: Lithium-ion battery production facility at the Gujarat plant—developed with Toshiba and Denso—will localize over 80% of battery value within India, a key step toward self-reliance in clean energy manufacturing.

Addressing Supply-chain Challenges

Despite optimistic expansion plans, Suzuki faces obstacles like rare-earth material shortages, which previously triggered production cuts. The company is now working closely with the government and exploring domestic refining partnerships to mitigate supply-chain risks.

India’s EV Landscape: A Growth Story

India’s EV sector is booming, with an estimated CAGR of over 19% expected through 2029. Suzuki’s investment aligns with the government’s rapidly evolving infrastructure and subsidies for green mobility.

Looking Ahead:

With this investment, Suzuki-Maruti aims to bolster India's auto production to 4 million vehicles annually by 2030, doubling current output. There are also ambitions to capture a 50% market share and triple its export volumes to 750,000 units per year by 2030–31.

Summary Table

Priority Area	Key Highlights
Investment Scale	₹70,000 crore (~$8 billion) over 5–6 years
New BEV Launch	e-Vitara mid-size SUV production began August 2025
Export Strategy	Serving 100+ countries from Gujarat facility
Capacity Expansion	Targeting 1M units/year; global hub for EVs
Localization & Sustainability	80% component localization; carbon-neutral push
Strategic Challenges	Rare-earth dependency, supply-chain vulnerabilities
Growth Vision	4M units by 2030; 750,000 exports; 50% domestic share

This bold initiative cements Suzuki’s faith not just in India’s market potential but also in the country's readiness to lead in global EV manufacturing. With strong government support, expanding infrastructure, and a multi-pronged strategy, India looks well-positioned to drive the world’s electric mobility future.