Suzuki Motor Corporation announced on Thursday that by the 2030 fiscal year, the company will invest 4.5 trillion yen (currently about 235.35 billion yuan, 34.8 billion U.S. dollars) in research and development and capital expenditures, to produce pure electric vehicles (EV).
Suzuki is known for producing compact "light" cars. The 4.5 trillion yen investment will be divided into two parts, of which 2 trillion yen (currently about 104.6 billion yuan) is invested in electrification and autonomous driving technology, and the other part 2.5 trillion yen (currently about 130.75 billion yuan) was allocated for the construction of battery electric vehicle factories and renewable energy facilities.
Suzuki Motor said that of the funds dedicated to electrification, 500 billion yen (currently about 26.15 billion yuan) will be used to invest in batteries.
Suzuki will launch its first battery electric vehicles in Japan in fiscal 2023, including small sports utility vehicles and tiny "kei" cars. Considering cost-sensitive customers, Suzuki President Toshihiro Suzuki said that he hopes the new car will be priced at about 1 million yen (currently about 52,300 yuan).
Suzuki plans to launch all-electric vehicles in Europe and India next year, as well as the world's first all-electric motorcycle. The company aims to partner with Toyota to capture a larger share of India's nascent EV market.
However, Toshihiro Suzuki also said the company was not abandoning its range of hybrid and internal combustion engine vehicles, citing concerns over charging infrastructure, the cost of EVs and battery resources.
For India, Suzuki's main market, the company expects electric vehicles to account for 15 percent of its vehicle lineup by fiscal 2030, while internal combustion engine vehicles fueled by biofuels and ethanol will account for 60 percent.
Suzuki Motor Corporation's announcement of investing 4.5 trillion yen in electric vehicles by 2030, is a significant move in the industry towards a greener future. The company's plan to launch electric vehicles in Japan, Europe, and India, including the world's first all-electric motorcycle, is a step towards reducing carbon footprint and dependence on fossil fuels. The company's focus on affordability for cost-sensitive customers and its plan to retain its range of hybrid and internal combustion engine vehicles, indicates a balanced approach towards the transition to electric vehicles. The partnership with Toyota to capture a larger share of India's nascent EV market is a wise move as it will help Suzuki to leverage Toyota's expertise in electric vehicles. With the growing concerns of global warming and pollution, Suzuki's commitment to invest in electric vehicles is commendable and will help in reducing the negative impact of vehicles on the environment.