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Japanese automobile giant Suzuki Motor Corp’s (SMC) Chairman Osamu Suzuki on Thursday announced setting up of a lithium ion battery plant at the company's existing facility at Hansalpur in Gujarat.
Suzuki stated that the new plant, which will make lithium-ion batteries for hybrid car models to be sold in domestic and international markets, will be set up jointly by Suzuki, Toshiba Corporation and Denso with a proposed investment of $180 million (₹1,151 crore).
The proposed plant to be located in the suppliers park at Suzuki's Hansalpur plant in Gujarat is expected to be operational from 2020. Suzuki made this announcement during the 12th India-Japan Annual Summit at Mahatma Mandir here in the presence of Prime Minister Narendra Modi and his Japanese counterpart Shinzo Abe.
The two leaders also performed a symbolic inauguration of the existing vehicle plant and foundation stone laying for the battery plant.
“We plan to use these batteries for hybrid vehicles that will be sold in India and exported too. This facility is being set up as part of our commitment to Make In India," Suzuki said in his address.
Hansalpur facilitySMC's wholly-owned subsidiary Suzuki Motor Gujarat Pvt Ltd (SMG) had commissioned its Hansalpur facility in February 2017 and manufactures Baleno model with annual capacity of 250,000 units at Plant A of the facility.
Suzuki further announced to set up third plant (Plant C) of the company at the Hansalpur facility taking the total installed capacity to 750,000 vehicles per annum.
The third line of production will be set up with a fresh investment of ₹3,800 crore taking SMC’s total investment to ₹13,400 crore generating employment for 10,000.
The construction of plant B with capacity of 250,000 vehicles has already begun along with the construction for engine plant, which will have a capacity of 500,000 units. The two plants are expected to be commissioned by 2019.
The company has already committed investment of $1.5 billion (₹9,600 crore) for the existing vehicle facility and the two under-implementation plants at Hansalpur.
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