Suzuki to use cow dung for its CNG cars, signs MoU with NDDB

India’s largest car manufacturer company Suzuki Motor Corporation (SMC) has announced that it will use cow dung to power its CNG cars. An MoU has been signed between Maruti Suzuki and Asia’s largest dairy manufacturer National Dairy Development Board (NDDB), SMC stated while announcing its growth strategy for 2030.

The company in its growth strategy for 2030 said it has invested in Fujisan Asagiri Biomass that generates power from biogas derived from cow dung in Japan, and beginning its study.

“While we expect the Indian market to grow toward FY2030, we also expect that the increase in total CO2 (carbon dioxide) emission amount is unavoidable, regardless of reduction in CO2 emission from products. We will challenge to strike a balance between the increasing sales units and reducing total CO2 emission amount,” SMC said.

Suzuki’s unique initiative to tackle this challenge is the biogas business, in which biogas derived from cow dung, which are dairy wastes that can be seen mainly in India’s rural area, will be produced and supplied.

The company said this biogas could be used for Suzuki’s CNG models which account for approximately 70 per cent of CNG car market in India.

“Suzuki signed an MoU with the Indian government agency National Dairy Development Board and Banas Dairy, Asia’s largest dairy manufacturer, to conduct verification of biogas. We also invested in Fujisan Asagiri Biomass which makes power generation from biogas derived from cow dungs in Japan, and are beginning its study,” said SMC.

The company said that it believes that the biogas business in India not only contributes to carbon neutrality, but also promotes economic growth and contributes to the society of India. “We are also in view of expanding the business to other farming areas in regions including Africa, ASEAN, and Japan in the future,” it added.

Suzuki, the market leader of India‘s automobile market which contributes to carbon neutrality and the economic growth of emerging countries, is consistent with the intent of the Paris Agreement, which requires harmony between developed countries and emerging countries for the reduction of CO2 emission. The company said it believes that it could contribute to its stakeholders throughout the world.

Suzuki headquarters, Yokohama Lab, Suzuki R and D Center India and Maruti Suzuki will cooperate for efficient development by sharing the development in each field for future technologies, advanced technologies, and mass production technologies.

Also, the Suzuki Innovation Center is exploring new connections and innovations for Suzuki to thoroughly take root in India.

The company said, “We will enhance our manufacturing strength by also cooperating with outside partners including startup companies, Suzuki Suppliers Association, and cooperation with universities in Japan and India. We will deepen our cooperation relationship with Toyota Motor Corporation while continuing to be a competitor, and aim for sustainable growth and conquer various issues surrounding the automobile industry.” Suzuki also said, “Through the cooperation, we will cooperate in development of advanced technologies including autonomous and battery of electrified cars, business expansion in promising emerging countries, efforts for carbon neutrality in India, as well as the formation of a recycling-based society that considers the environment.” The Suzuki Global Ventures, a corporate venture capital fund established in 2022, was accelerating the co-creation activities with start-up companies by exceeding the framework of each company and their conventional businesses, according to the statement from the company. “We will make investments in areas that serve to solve customer and social issues, and contribute to development of ecosystem that grows with start-up companies.” The company also said it will invest two trillion Yen in research and development expenses and 2.5 trillion Yen in capital expenditures, which is a total of 4.5 trillion Yen by FY2030 (2029-30). “Of the 4.5 trillion Yen, 2 trillion Yen will be electrification-related investments, of which 500 billion Yen will be battery-related investments,” it added.

Two trillion Yen, the company said, is planned to be invested for R and D expenses in areas including carbon neutrality such as electrification and biogas, as well as autonomous. It added, “2.5 trillion Yen is planned to be invested for capital expenditures in facilities including construction of BEV battery plant and renewable energy facilities.” Consolidated net sales forecast for FY2022 is 4.5 trillion Yen, which is growing at a pace to exceed the 4.8-trillion Yen target for FY2025 set in the mid-term management plan, the company said, adding that “We would like to grow in line with the emerging countries by contributing to their growth. We will challenge to double the FY2021 net sales result of 3.5 trillion Yen to 7 trillion Yen in FY2030.”