Suzuki Motor Corp. said Sunday it will invest a total of about 150 billion yen ($1.26 billion) in India for local manufacturing of electric vehicles starting in 2025.
The deal is part of Japan's 5 trillion yen, five-year public and private investment plan in India that Japanese Prime Minister Fumio Kishida unveiled during a meeting with his Indian counterpart Narendra Modi in New Delhi on Saturday.
The Japanese automaker, known for a significant presence in India's car market, signed a memorandum of understanding with the western state of Gujarat on Saturday for local manufacturing of EVs and their batteries.
The signing took place at an India-Japan Economic Forum in New Delhi in the presence of the two countries' prime ministers.
"Suzuki's future mission is to achieve carbon neutrality with small cars," Suzuki Motor President Toshihiro Suzuki said at the forum.
The operation of a new plant to be built for battery production is planned to begin in 2026, the carmaker said.
Suzuki is India's biggest carmaker, accounting for around half of the country's new vehicle sales.
The move by the Japanese automaker is in line with efforts by the Indian government to reduce greenhouse gas emissions amid the global trend toward decarbonization.
Related coverage:
Japan, India will not tolerate attempts to alter status quo by force
Honda asks suppliers to achieve net zero carbon emissions by 2050
Subaru unveils its first EV to be sold globally, to launch mid-2022
