Suzuki and Toyota Collaborate on Electric Vehicle

(Reuters) – Japanese automaker Suzuki Motor's Indian unit will supply its first-ever electric vehicle (EV) to Toyota Motor, marking their first collaboration on green vehicles.

Maruti Suzuki, majority-owned by Suzuki Motor, will begin production of the EV from spring 2025 at its plant in Gujarat, India.

Following the announcement, Maruti Suzuki shares climbed about 4% to near session highs.

The platform for the EV was jointly developed by Suzuki, Toyota, and Daihatsu Motor. Suzuki has developed the green vehicle.

Toyota President Koji Sato stated, "We would like to learn from each other's strengths, compete, and further joint efforts based on a multi-pathway approach."

Previously, Suzuki and Toyota collaborated on combustion and hybrid vehicles but not on EVs. This collaboration positions India as an EV hub for Suzuki, which plans to invest over a billion dollars in its biggest market outside Japan.

Neither Suzuki nor Toyota's Indian units currently sell EVs in India.

The EV, a sport utility vehicle, will feature a 60-kilowatt-hour battery pack with a 500-kilometre (311 miles) range. A concept of the vehicle was showcased at India's auto show last year.

It will be one of 10 battery-powered vehicles Toyota plans to launch by 2026, according to a spokesperson. There are no plans for production outside the Gujarat plant.

Earlier, Toyota reported selling just over 108,000 battery-powered EVs globally during the first nine months of the year, accounting for 1.5% of its global sales, including Lexus.

Maruti Suzuki plans to add a fourth production line at the Gujarat facility, dedicated to EV production, with a capacity of 250,000 units per year. The company aims to supply the EV globally, including to its Japanese parent and European markets.