Electric vehicles (EV) and e-mobility have become the new focus for several automobile makers as India starts to take small steps towards finding more sustainable solutions.
According to Business Insiders, companies like MG Motors, Tata Motors and many others have already laid out their plans to invest at least Rs.35,040 ($5 billion) to reap the maximum benefits when the time for EVs finally arrive in India.
Maruti Suzuki is the latest one to join the bandwagon. The company, on Sunday, announced that it plans to invest Rs.10,440 crore to build a new electric car and battery factory in Gujarat, India. The company plans to roll out affordable EV models in India and Japan by 2025.
This is Maruti Suzuki’s first commitment towards e-mobility. The company had till now emphasised that the Indian market is not yet ready for EV sales yet. Meanwhile, other automobile giants have already working towards their plans of electrification. So far, automotive major Tata Motors’ investment plans of Rs.15,000 (close to $2 billion) is the biggest one in the Indian market.
It plans to spend this capital over the next five years in developing new products with different kinds of body styles, price, and driving range options.
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Meanwhile, MG Motors is reportedly looking to raise $350-500 million (Rs.2,600-3,800 crore) to build up its capabilities and fund its future growth in India. The company is also exploring setting up an EV subsidiary to bring in new investors.
As per a recent study by Catapult, EVs currently account for less than 1% of total vehicle sales in India but the market is growing rapidly.
The company expects the Indian e-mobility market to be worth around at least Rs.47,500 crore by 2025. Two-wheelers account for the largest share of this market at 62%, followed by three-wheelers at 37%, the report added.
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