Suzuki Motor plans to invest more than US$8 billion in India over the next five to six years as it begins producing EVs at its Hansalpur plant in Gujarat.

CEO Toshihiro Suzuki announced the investment at the launch of a new assembly line for Suzuki’s first e-Vitara SUV.

The Hansalpur facility is expected to reach a capacity of 1 million units and will export the e-Vitara to more than 100 countries, starting with Europe.

The investment aims to help Maruti Suzuki double production capacity in India to 4 million units by 2030.

Suzuki is expanding EV and hybrid production in India as demand slows in Europe and Japan.

Along with partners Toshiba and Denso, it has started local production of lithium-ion batteries.

Maruti Suzuki’s chairman said mass EV adoption in India will depend on cheaper vehicles and higher household incomes.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ India transforms from market to global manufacturing hub for Suzuki

Suzuki’s $8 billion investment over five to six years represents the culmination of a four-decade strategy that has transformed India from simply a sales market into a critical global production center1.

The company first entered India in 1982 through a joint venture, and by 2018, began exporting vehicles from its Gujarat plant, starting with 126,000 export units that year, representing a 102% year-over-year increase2.

Now Suzuki plans to export its e-Vitara EVs from the same Gujarat facility to over 100 countries, including back to Japan and Europe, with the plant targeting a capacity of 1 million units1.

This evolution shows how major automakers increasingly use India not just for domestic sales but as a cost-effective manufacturing base for global markets.

The strategy makes economic sense given India’s lower production costs and Suzuki’s established local supply chain, where over 90% of parts are sourced domestically3.

2️⃣ EV infrastructure investment outpaces current market demand in India