Toshihiro Suzuki, the president of Suzuki Motor Corp., announced on Sunday that the Japanese automaker will establish a worldwide research and development organisation in India, expanding its presence in a country that is slated to become a centre for electric vehicles (EVs).

Toshihiro Suzuki stated at an event in Gandhinagar, the capital of western Gujarat state, that the new firm, a fully owned subsidiary of Suzuki Japan, will increase the automaker's R&D competitiveness and capabilities in India and other international markets. Suzuki Group has made India one of its most important markets, he said, adding that Suzuki would continue to make significant investments there. Suzuki will begin manufacturing EVs at its Gujarat factory in 2025. Suzuki already produces combustion engine cars in India for its local unit Maruti Suzuki and for export. Additionally, it is establishing a second facility in the state to start producing EV batteries in 2026.

According to the Japanese automaker, its electrification plans in India will cost more than Rs 10,400 crore ($1.3 billion), making it one of Suzuki's largest battery and EV expenditures internationally. It has already made 650 billion rupees worth of investments there. According to Suzuki Group, India is a key centre for the world's auto manufacturing. To produce lithium-ion batteries for hybrid cars for both domestic use and export, Suzuki also has a joint venture with Japanese companies Denso Corp. and Toshiba Corp.

Maruti, which dominates the Indian auto market with its compact, inexpensive cars, is majority owned by Suzuki. However, as consumers switch to larger vehicles like sports utility vehicles and as regulations call for safer and greener vehicles, which raises costs, the company is facing rising competition. By providing corporations with billions of dollars in incentives, India is also encouraging automakers to produce more electric vehicles. According to Indian Prime Minister Narendra Modi, EVs are igniting a quiet revolution across the nation, and his administration is taking steps to increase both the supply and demand for these eco-friendly cars. He said at the event on Sunday to commemorate 40 years of Suzuki's cooperation with Maruti that this quiet revolution would bring about significant improvements.

The Suzuki EV battery manufacturing facility in Gujarat and the Maruti vehicle manufacturing site in the northern state of Haryana both had their foundations officially laid by Modi. Maruti sees electrification as a challenge and wants New Delhi to encourage all cleaner technologies, including ethanol and hybrid, instead of simply EVs, which it only plans to introduce in 2025.