Suzuki to invest $35b in EVs
Suzuki Motor Corp announced that it will allocate 4.5 trillion yen ($34.8 billion) towards research, development, and capital expenditure for the production of battery-powered electric vehicles (EVs) through fiscal year 2030.
The Japanese car manufacturer, famous for producing compact “kei” vehicles, announced plans to allocate 2 trillion yen towards the development of electrification and autonomous driving technologies.
Additionally, 2.5 trillion yen will be invested in the construction of a battery electric vehicle plant and renewable energy facilities.
Suzuki announced that 500 billion yen from the allocated funds for electrification will be used for investing in batteries. This move follows the footsteps of other Japanese automakers who are striving to keep up with their European and US competitors in the rapidly expanding battery electric vehicle market.
In November, Mazda Motor Corp revealed a $10.6 billion investment strategy aimed at electrifying its automobiles.
Meanwhile, Suzuki announced plans to launch its initial lineup of battery-powered electric vehicles (EVs) in Japan during the 2023 fiscal year. This lineup will include compact sport-utility vehicles and tiny “kei” cars. With a focus on affordability, Suzuki’s President, Toshihiro Suzuki, stated his goal of offering these vehicles at a price point of around 1 million yen.
Suzuki intends to bring battery-powered electric vehicles to Europe and India, and also launch its first battery electric motorcycles worldwide the following year.
The company aims to capitalize on its partnership with car giant Toyota Motor Corp (7203.T) to secure a larger portion of India’s rapidly growing electric vehicle market.
Suzuki announced during a recent visit to India that they aim to draw inspiration from Toyota to develop small electric cars using EV technology.
However, the CEO, Toshihiro Suzuki, emphasized that the company will not abandon their hybrid and internal combustion vehicles as there are currently limitations in charging infrastructure, high costs of EVs, and concerns over limited battery resources.
According to Suzuki, the company predicts that in India, its major market, electric vehicles will account for 15% of its total vehicle offerings in 2030, while cars powered by internal combustion engines using biofuels and ethanol will make up 60%.
“We aim to provide vehicles at different price points, for different consumer groups, and for various geographic regions,” stated Toshihiro Suzuki.
