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We visited Suzuki Motor Corp’s Gujarat plant (SMG) to witness the commencement of production of MSIL’s first EV, the e-Vitara, as well as the start of local manufacturing of the first lithium-ion battery, cells, and electrodes for a strong hybrid vehicle at the TDS Gujarat plant. Some of the key takeaways from the visit are: 1) The company continues to maintain its earlier guidance of producing 67k units for the e-Vitara in FY26. The initial focus will be on catering to export demand, with the domestic launch in India planned once sufficient production capacity becomes available; 2) In exports, the e-Vitara is expected to be profitable at the EBIT level from Day 1 itself; 3) Key features of e-Vitara include ventilated seats, a 10-way power-adjustable driver's seat, 7 airbags, ESC, and Level 2 ADAS, which includes advanced driver-assistance systems like adaptive cruise control, lane keep assist, and adaptive high beam system; 4) A differentiating feature of the Toyota hybrid platform is that the vehicle runs on battery for 50% of the time. This is enabled not only by the highly efficient battery chemistry but also by Toyota’s superior ICE engine; and 5) In terms of localization, TDSG has achieved electrode-level localization for hybrid powertrains in India, which is an industry first. This means that approximately 80% of the value addition in a battery pack is now localized by TDSG. Maruti Suzuki remains our top pick in Auto OEMs.

e-Vitara – update

* The company has maintained its earlier guidance of producing 67k units of eVitara in FY26. The initial focus will be on catering to export demand, with the domestic launch in India planned once sufficient production capacity becomes available.

* Key export markets for e-Vitara will be Western Europe and Japan.

* In exports, the e-Vitara is expected to be profitable at the EBIT level from Day 1 itself.

* MSIL has committed approximately INR22b toward plant equipment—including dies and fixtures—for the e-Vitara platform.

* Given the limited EV penetration in India, the company has adopted a top-down approach—starting with a high-end model and planning to launch lower-end models later. However, this does not rule out the possibility of launching models above the e-Vitara at a later stage.

Key features.

* Some of the key features of e-Vitara include ventilated seats, a 10-way poweradjustable driver's seat, sliding and reclining rear seats, a 40-20-40 rear seat configuration, and flexible boot space.

* It also features Level 2 ADAS, which includes advanced driver-assistance systems like adaptive cruise control, lane keep assist (car remains stable even when cornering at high speed), and an adaptive high beam system.

* Safety features include 7 airbags, front and rear parking sensors with a 360- degree camera, electronic stability control, ISOFIX child-seat mounts, and an electronic parking brake with auto hold.

Pointers on TDSG strong hybrid

* TDSG is India's first lithium-ion battery manufacturer for hybrid vehicles, and is a JV between TOSHIBA, DENSO, and Suzuki, located in Gujarat

* In terms of localization, TDSG has achieved electrode-level localization for hybrid powertrains in India, which is an industry first. This means that approximately 80% of the value addition in a battery pack is now localized by TDSG.

* It now makes both the cathode and anode in India.

* Imports include raw materials needed for the electrolyte, including graphite, NMC, lithium-ion cells, semiconductors, etc.

* A differentiating feature of the Toyota hybrid platform is that the vehicle runs on battery for 50% of the time. This is enabled not only by the highly efficient battery chemistry but also by Toyota’s superior ICE engine.

* It also showcased an ambulance variant of Invicto, which would be hybridbased, to leverage the government’s PM e-drive scheme, which has allocated INR5b specifically for ambulances in the recent budget.

Gujarat plant – update

* The plant is spread over 2.6m sq mtr with a total capacity of 750k units pa, currently set up in three phases, each having 250k units pa capacity.

* The company is in the process of setting up Plant D with a capacity of 250k units pa, at an investment of INR 32b with SOP expected in FY27.

* The SMG plant has surpassed 4.3m units in production since its inception and has set a record for reaching 4m units in production in the least time in India.

* The plant has a vendor base of about 80+ suppliers in its vendor park, as it works on the JIT principle with a maximum inventory of 2-2.5 hours of requirement from vendors.

* It has a dedicated Railway siding for this plant as well.

Why was this location selected

* This is a power surplus state and, hence, there is no risk of power shortage in this state.

* All three key ports, Mundra, Kandla, and Pipavav, are located close to the plant. It exports to Japan from the Pipavav port. Currently, around 30-32% of the plant’s production is exported.

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