Japanese automobile giant Suzuki Motor Corporation has announced a landmark investment of ₹70,000 crore (approximately $8 billion) in India over the next five to six years, with a strong focus on Gujarat. This commitment was unveiled during a high-profile event on August 25, 2025, in Hansalpur, Gujarat, where Prime Minister Narendra Modi flagged off Maruti Suzuki’s first global Battery Electric Vehicle (BEV), the e-Vitara, and inaugurated the country’s first lithium-ion battery and cell production facility with electrode-level localization.
Gujarat: The Heart of Suzuki’s Expansion and India’s Auto Hub
Gujarat is at the center of Suzuki’s ambitious plans, rapidly emerging as a global automobile manufacturing powerhouse. The Hansalpur facility in Gujarat will evolve into one of the world’s largest car manufacturing hubs, with a targeted annual production capacity of 1 million units. This makes it a strategic export base for the e-Vitara, which Suzuki plans to export to over 100 countries including Japan and Europe.
Made In India Battery Electric Vehicle (BEV) e-Vitara will now be exported to over 100 countries. #AatmanirbharBharat
— Piyush Goyal (@PiyushGoyal) August 26, 2025
📍Hansalpur, Gujarat pic.twitter.com/o5M9pJVT18
The company has invested heavily already, including ₹7,300 crore in a battery plant and ₹3,100 crore in an EV manufacturing facility in Gujarat. Furthermore, Suzuki Motor Gujarat Private Limited (SMG) is expanding capacity by establishing a fourth production line with an investment of ₹3,200 crore, expected to be operational by FY2026–27, scaling the plant’s capacity from 7.5 lakh to 1 million vehicles annually.
With this and a new greenfield plant set to start by FY28–29, Gujarat’s total auto production capacity will reach 2 million units, contributing significantly to the company’s goal of 4 million units in India by 2030–31.
Prime Minister Modi’s Role and the Make in India Vision
At the event, Prime Minister Narendra Modi hailed the occasion as a milestone for India’s electric mobility ambitions and the Make in India campaign. Modi highlighted how Suzuki’s expansion in his home state symbolizes the deep business and cultural ties between India and Japan. He urged consumers to support locally made products, including Maruti vehicles, reinforcing national pride in India’s growing automotive industry.
The lithium-ion battery plant inaugurated by PM Modi is a critical step toward India’s strategy for carbon neutrality and electric vehicle ecosystem development, aimed at reducing dependency on imports and fostering domestic manufacturing. This project aligns with India’s net-zero emission goals to be achieved by 2070, underscoring Gujarat’s role in the green mobility revolution.
India and Japan share more than just diplomatic ties. It is a bond of culture, trust and progress. pic.twitter.com/kzcUXBSWUX
— Narendra Modi (@narendramodi) August 26, 2025
Gujarat’s Rising Stature in Automobile Manufacturing
Gujarat’s automobile sector posted investments totaling ₹29,700 crore in FY 2022-23, reflecting a CAGR of 16.4% over the past five years. The Mandal Becharaji Special Investment Region (SIR) is emerging as a major hub attracting global players and fostering a vibrant auto-component ecosystem.
The state’s excellent port connectivity supports its growing export market, both for vehicles and parts, with exports worth ₹3,459 crore in 2024 to destinations including South Africa, Saudi Arabia, Japan, UAE, and Chile.
Other Notable Investments in Gujarat’s Auto Sector
Besides Suzuki, several automobile manufacturers have chosen Gujarat for major investments owing to its investor-friendly environment, infrastructure, and skilled workforce. For instance:
- Maruti Suzuki’s earlier announcements included a ₹35,000 crore investment for a new automobile plant and multi-line expansion, indicating long-term commitment to Gujarat’s growth.
- Emerging electric vehicle startups and component manufacturers are also increasing their footprints in Gujarat, attracted by supportive policies and the state’s vision to become a comprehensive mobility hub.
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Conclusion
Suzuki’s ₹70,000 crore investment and the PM Modi-led inauguration event underscore Gujarat’s rising importance as India’s automotive manufacturing and export hub. With production capacity scaling rapidly and first-ever make-in-India electric vehicles rolling out, Gujarat is poised to play a pivotal role in India’s green mobility future and global auto supply chain.
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