Suzuki Motor Corp, the Japanese automaker best known for its compact "kei" cars, announced on Thursday that it intends to invest 4.5 trillion yen ($34.8 billion) in research, development, and capital spending to produce battery electric vehicles (EVs) by fiscal 2030.
Reuters reports that the company intends to invest 2 trillion yen in electrification and autonomous driving technologies and 2.5 trillion yen in constructing a battery EV plant and renewable energy facilities.
Catching Up on Europe and US Rivals
This move comes as other Japanese automakers have announced similar plans to catch up with European and American competitors in the rapidly growing battery EV market. Mazda Motor Corp announced a $10.6 billion spending plan to electrify its vehicles in November.
Suzuki aims to launch its first battery EVs in Japan in fiscal 2023, including small SUVs and micro "kei" cars. Toshihiro Suzuki, Suzuki's president, said he hoped to sell vehicles for around 1 million yen to cost-conscious customers.
The company also plans to offer battery EVs in Europe and India, as well as the world's first battery electric motorcycles, the following year.
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One of the primary markets that Suzuki is concentrating on is India. There, the company intends to capitalize on its partnership with automotive giant Toyota Motor Corp. to seize a more significant portion of the developing electric vehicle market in the country, which is gaining steam.
During a recent trip to India, the president of Suzuki stated that the company intends to learn how to use electric vehicle technology from Toyota to manufacture small electric cars.
Combustion Vehicle Lineup
Suzuki's president emphasized that despite this announcement, the company continues to produce hybrid and internal combustion engine vehicles, citing a lack of charging infrastructure, high EV costs, and worries about limited battery resources.
In India, Suzuki projects that EVs will account for 15% of its vehicle lineup by the end of the current fiscal year. In comparison, internal combustion engine vehicles fueled by ethanol and biofuels will account for 60%.
"We will put in vehicles for various price ranges, for various people, for various regions," said Suzuki's president.
The Indian government has also recently announced incentives to increase the number of EVs on the road, reaching 70% of commercial car and truck sales, 30% of private vehicles, 40% of buses, and 80% of two- and three-wheelers by 2030.
The government has reduced taxes on electric vehicles and launched two subsidy programs to encourage using clean-energy cars.
The announcement made by Suzuki is a clear indication of the growing trend toward electrification that is occurring within the automotive industry.
Automakers are making significant investments in electric vehicles (EVs) to maintain their competitive edge and meet the stringent emission reduction and sustainable transportation goals governments are setting worldwide.
Suzuki is positioned to be a key player in the global electric vehicle market in the years to come by concentrating on cost-conscious customers and planning to learn from industry leaders like Toyota.
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