In a major shot in the arm for India’s fledgling electric car market, the largest car maker Maruti Suzuki parent company Suzuki Motor Corporation has entered into a joint venture with Toshiba Corporation and Denso Corporation for production of automotive lithium ion battery packs in India.
The move may pave way for development of affordable electric powertrain for the compact car segment and drive electrification in India, which is forecasted to grow into the third largest car market by 2020-2021
The joint venture company will be established in 2017 and shall move to manufacturing phase at the earliest. The initial capital expenditure will be 20 billion Japanese yen or Rs 1,184 crore. The joint venture company will be capitalized at 2 billion Japanese yen, with the planned participation ratio of SUZUKI 50%, TOSHIBA 40% and DENSO 10% respectively.
The statement issued by Suzuki Motor Corporation in Japan stated, with higher attention being paid to environment in India and new CO2 standards for automobiles planned, the introduction of sustainable technology suitable for affordable cars is required.
“In the Indian automotive market where compact cars are the mainstream models, introduction of sustainable technology suitable for such affordable cars is required. The battery pack manufacturing joint venture by the three companies will realize stable supply of lithium-ion battery packs in India in the course of promoting sustainable cars in the country and will contribute to “Make in India” initiative by the Indian Government,” added the statement.
This is yet another important move from Suzuki Motor Corporation to prepare itself for the future demand for green mobility, after entering into MoU with Toyota Motor Corporation to explore partnership on alternate fuel technology and autonomous vehicles
The global heads of Suzuki and Toyota in fact met up with Prime Minister Modi recently and are keen to work together in areas of manufacturing and cleaner technologies. The partnership will bring in Toyota’s global leadership in technology (electric and autonomous mobility) and manufacturing, and Suzuki’s strength in manufacture of small cars, especially in India.
Establishment of the joint venture company will be further examined in details by the three companies, and subject to approval by respective authorities in accordance with applicable competition laws, added the statement.