Suzuki Motor Corp. plans to invest around 150 billion yen ($1.26 billion) in its main market of India to step up production of electric vehicles and build a new plant for car batteries, sources close to the matter said Saturday.

The move by the Japanese automaker is in line with efforts by the Indian government to reduce greenhouse gas emissions amid the global trend toward decarbonization.

Production of EVs in India is slated to begin by 2025 at one of Suzuki's existing plants, with operation of the new plant for producing automotive batteries to start around the same time.

Suzuki, which has plants in the western state of Gujarat and Haryana in the north, is India's biggest carmaker, accounting for around half of new vehicles sold in the country.

The company is aiming to increase its competitiveness by strengthening its EV production and expanding its product lineup in the local market, where other automakers are selling EVs in the 1 million yen range after subsidies.

Suzuki also plans to allocate 1 trillion yen for research and development on hybrid vehicles and other forms of automotive electrification over five years from fiscal 2021.

==Kyodo

© Kyodo News International, Inc., source Newswire