Suzuki Motor Corporation’s wholly-owned arm Suzuki Motor Gujarat (SMG), which plans to domestically manufacture EVs and batteries by 2026, will observe the identical association for promoting the automobile to Maruti Suzuki India (MSI) because it at present has for inside combustion engine (ICE) automobiles.
Maruti Suzuki chairman RC Bhargava mentioned that the pricing of electrical automobiles (EVs) or batteries offered by SMG to MSI will consider the price of materials, labour, electrical energy, depreciation of kit and different consumables, however not embrace any income.
“The pricing of the EVs sold will be based on the contract manufacturing agreement signed at the time of the setting up of the SMG plant in 2014,” Bhargava mentioned.
He was responding to a report by proxy advisory agency Institutional Investor Advisory Services, that mentioned Suzuki’s transfer would depart MSI with a legacy portfolio of automobiles with a restricted future. “Tell me how is it possible? If the arrangement is working fine now with no disadvantage, how can it be wrong for EVs. The only thing changes with the new plant is instead of ICE there would be EVs.”
