With a mega investment of Rs 3800 Crores, Maruti-Suzuki will start up a new manufacturing unit in Gujarat to make electric run cars using lithium-ion batteries.

A lot has been happening in the country’s electric vehicle space. Tata Motors is looking to revamp Nano as an EV, in a bid to boost sales. Mahindra Group, on the other hand, is preparing to enter the cab aggregator sector with electric cars. In a related development, Japanese automaker Suzuki Motor Corps and Indian automaker Maruti, have decided to make electric cars at its factory in Gujarat for India and the world. Suzuki announced about its intentions of fresh investment worth Rs 3800 Crore for Gujarat plant, on Thursday; this will be the company’s third electric car production plant in country.

Suzuki will also partner up with its allies –  Toshiba and Denso to invest around Rs 1,150 crore for a new unit to produce lithium ion batteries. These batteries will be used to charge up the electric cars, hybrid cars and other vehicles through cost-effective, quality assured and enough quantity of in-house production. The new EV production plant will be located at Hansalpur of Gujarat with a capacity of 2.5 lakh units. It will increase investments in the state to over Rs 13,400 crore as it moves to boost annual manufacturing capacity in Gujarat to 7.5 lakh units within the next couple of years.

The launch of new production unit at Hansalpur will also provide employment to 10,000 people, including suppliers. Suzuki is also planning to develop a hospital and school near the plant, which will help in educating children of the company’s employees. This will be the first-ever completely Suzuki owned full-fledged electric car manufacturing unit in India and is expected to begin its construction from 2019. This project will also fulfil India’s plans and intentions to sell only electric cars by 2030.

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