Shares of Maruti Suzuki rose 2.6 per cent to an all-time high after the investment was announced during an event to mark the start of commercial production of the mid-sized "e Vitara" SUV at its Gujarat plant in the village of Hansalpur Becharaji.
Maruti will export between 50,000 and 100,000 of the EVs a year, its chairman RC Bhargava said. He added that there was not yet a timeline for a launch in India, the world's third-largest car market in which Suzuki commands a leading 40 per cent share, in part due to the high cost of batteries that would push up costs for price-conscious local consumers.
CNA Games
Guess Word
Crack the word, one row at a time
Buzzword
Create words using the given letters
Mini Sudoku
Tiny puzzle, mighty brain teaser
Mini Crossword
Small grid, big challenge
Word Search
Spot as many words as you can
Show More
Show Less
The e Vitara will compete with Hyundai's Creta and Mahindra's XEV 9e.
Suzuki Motor earlier this year trimmed its sales target in India, its biggest market by sales and revenue, and also scaled back its electric vehicle plans amid intensifying competition in the South Asian nation and a global slowdown in EV sales.
EV sales growth in India is still outpacing the overall car market and electric models account for about 4.5 per cent of all cars sold in the current fiscal year from April 1. The government is maintaining a target of a 30 per cent share by 2030.
The Gujarat plant is set to become one of the world's largest automobile manufacturing hubs, with a planned capacity of 1 million units, said Suzuki Motor chairman and president Toshihiro Suzuki.