But what is going on at Suzuki? It is certain that the Japanese manufacturer, which still counts in the history of motorcycling, will withdraw from MotoGP at the end of the year. However, no official statement has yet arrived from Hamamatsu. There is a simple explanation for this: offices are closed due to public holidays in Japan. So, presumably, it will be Friday (or next Monday at the latest) that they release an official statement about this “rumor”. Nevertheless, we learned yesterday that Suzuki is accused of having equipped at least 22 diesel cars with devices distorting anti-pollution standards, a maneuver similar to that of the VW group, with a fine attached. And it now seems that the brand's strategy is electric...
Indeed, Suzuki Motor Corporation has signed a memorandum of understanding with the state of Gujarat, India, to invest 104,4 billion rupees ($1,37 billion) in the local manufacturing of electric vehicles and batteries. The investment is an encouraging development and will further strengthen Suzuki's competitive position, despite it already being a leader in the Indian market.
Suzuki Motor Gujarat Private will invest Rs 31 billion by 2025 to increase production capacity of electric vehicle batteries and Rs 73 billion for building factory vehicle batteries, the company said. “Suzuki’s future mission is to achieve carbon neutrality with small cars”, said Suzuki Motor President Toshihiro Suzuki.
Japanese automakers have been slow to shape their electric strategies, but they are clearly in the race now and preparing for this future market which will be very competitive. However, global automakers have committed multi-billion dollar investments in electrification and Suzuki remains relatively weak in terms of investment/commitment.
Suzuki announced its strategy last year to enter large-scale electric vehicle development by 2025 and has also partnered with Toyota for this purpose. The Indian investments are in line with the group's strategy and essential for Suzuki to maintain its dominance in a market where it enjoys a 52,4% share through the Maruti Suzuki joint venture.
Investment in electric vehicles can write new fortunes for Maruti Suzuki in India, which has marginally lost its share to other automakers, mainly Hyundai and Tata Motors. The electric vehicle market in India is still in its infancy with only a few players offering mainstream electric vehicle products, including Tata, Mahindra, Hyundai and SAIC's MG Motors.
