Prime Minister Narendra Modi has marked a significant milestone in India's automotive and clean energy sectors by flagging off Suzuki's e-VITARA battery electric vehicle (BEV) at a ceremony in Hansalpur, Gujarat. This event underscores India's growing role as a global manufacturing hub for electric vehicles.

Global Export of Made-in-India EVs

The e-VITARA, manufactured in India, is poised to make its mark on the international stage. Suzuki plans to export this electric vehicle to over 100 countries, including major markets in Europe and Japan. This move not only showcases India's manufacturing capabilities but also positions the country as Suzuki's global manufacturing center for electric vehicles.

Maruti Suzuki Chairman RC Bhargava emphasized that India does not need protection from US tariff measures to remain competitive in global markets. The company will scale its electric and hybrid vehicle production based on demand, with one production line having a capacity of 250,000 units. Currently, all production is directed towards exports until domestic sales are announced.

EV and Hybrid Vehicle Production

Bhargava advocated for tax differentiation between vehicle technologies based on fuel efficiency and pollution performance, noting that petrol and diesel vehicles are currently taxed the same as hybrid and CNG vehicles. He highlighted that globally, both EVs and hybrids are selling well, with hybrids slightly ahead in most countries except China.

Boost to Domestic Battery Production

Modi inaugurated the production of hybrid battery electrodes at the TDS Lithium-Ion Battery plant in Gujarat. This facility is a joint venture between Toshiba, Denso, and Suzuki. The commencement of electrode production is a significant step towards localizing the EV supply chain, with over 80.00% of battery value now set to be manufactured within India.

Power Infrastructure Upgrades

The Prime Minister's visit also included the inauguration of power distribution projects valued at over Rs 1,000.00 crore. These projects, under the Uttar Gujarat Vij Company Limited, span across Ahmedabad, Mehsana, and Gandhinagar. The initiatives aim to reduce losses and modernize the electricity network, supporting the growing demand for power, including that from the expanding EV sector.

Implications for India's Automotive Sector

This series of inaugurations and launches highlights India's commitment to becoming a key player in the global EV market. By serving as Suzuki's hub for EV manufacturing and focusing on localizing critical components like batteries, India is positioning itself at the forefront of the automotive industry's electric revolution.

The export of the e-VITARA to major international markets demonstrates the quality and competitiveness of Indian-made electric vehicles on the global stage. This development is likely to attract further investments in the country's EV ecosystem and boost India's reputation as a manufacturing powerhouse.

Maruti Suzuki's Major Investment and Battery Production

In a significant development, a Suzuki Motor Co. executive announced that Maruti Suzuki India's Gujarat plant will serve as a major production center. The company plans to invest 700.00 billion rupees over the next 5-6 years, further solidifying Gujarat's position as a key automotive manufacturing hub.

Additionally, Maruti Suzuki India has achieved a notable milestone by commencing production of lithium-ion battery cells for hybrid vehicles. This move aligns with the company's strategy to localize critical components and strengthen its position in the evolving automotive landscape.

As the automotive industry worldwide shifts towards electrification, India's strategic moves in EV manufacturing and battery production are timely and significant. These developments are expected to create new job opportunities, drive technological advancements, and contribute to the country's economic growth while aligning with global sustainability goals.

Maruti Suzuki shares closed 1.85% higher at Rs 14,720.00 on the NSE, reflecting positive market sentiment towards these developments.

Prime Minister Narendra Modi is set to embark on a two-day visit to Gujarat, where he will inaugurate and dedicate development projects worth over ₹5,400.00 crore across various sectors. The visit, scheduled for August 25-26, will showcase significant advancements in urban infrastructure, power, transport, and green energy initiatives.

Boost to Electric Vehicle Manufacturing

A key highlight of the Prime Minister's visit will be the inauguration of localized production of hybrid battery electrodes at the TDS Lithium-Ion Battery plant. This facility, a joint venture between Toshiba, Denso, and Suzuki, marks a significant step towards self-reliance in the electric vehicle (EV) sector. The plant is set to manufacture over 80.00% of the battery value chain domestically, bolstering India's position in the global EV market.

In a momentous event, PM Modi will flag off Suzuki's first global battery electric vehicle, the e VITARA. Manufactured in India, this electric SUV is slated for export to more than 100 countries, including major markets in Europe and Japan. This launch underscores India's growing capabilities in EV production and its potential as a global export hub for electric vehicles.

Railway Infrastructure Enhancement

The visit will also see the dedication of railway projects worth over ₹1,400.00 crore. These include:

• Doubling of the Mahesana-Palanpur railway line
• Gauge conversion projects

These initiatives are expected to significantly improve rail connectivity and efficiency in the region.

Power Distribution Upgrades

Under the Revamped Distribution Sector Scheme, power distribution projects worth over ₹1,000.00 crore will be unveiled in key cities:

• Ahmedabad
• Mehsana
• Gandhinagar

These projects aim to enhance the reliability and quality of power supply in these urban centers.

Urban Development and Data Infrastructure

Additional projects to be launched during the Prime Minister's visit include:

• Road widening initiatives
• Urban infrastructure development projects
• Foundation laying for a new data storage centre in Gandhinagar

These projects are part of the government's efforts to improve urban living conditions and boost digital infrastructure in the state.

The diverse range of projects being inaugurated reflects the government's focus on multi-sectoral development, combining traditional infrastructure upgrades with cutting-edge technology initiatives. This visit by Prime Minister Modi is expected to give a significant boost to Gujarat's development trajectory, particularly in the realms of sustainable transportation and urban development.