MSIL parent commits Rs.10,500 crore investment in GujaratMARUTI - 10130 Change: -217.05 (-2.10 %)
News: MSIL’s parent i.e. Suzuki Motor Corporation (SMC) has entered into an MoU with Gujarat committing ~Rs.10,500 crore investment for manufacturing electric vehicles (Rs.3,100 crore), battery of electric vehicles (Rs.7,300 crore) as well as vehicle recycling plant (end of life vehicles, Rs.45 crore) by 2025-26.
Views: Investment in electric vehicle as well as battery ecosystem is intended to be routed through the parent i.e. SMC while investment in the vehicle recycling plant is intended to be routed through MSIL’s JV i.e. Maruti Suzuki Toyotsu India Pvt Ltd. This is a welcome step and is the first firm commitment from SMC on the EV front for the Indian markets. However, we are not very enthused by the timeline of investment, which is intended to be completed by 2025-26.