Who doesn’t want a piece of that booming Electric Vehicle market? Almost every carmaker is into it someway or the other. Now, Suzuki Motor Corporation has announced a joint venture company to produce lithium-ion battery packs in India with automotive components maker Denso and electronics company Toshiba.
Suzuki says, in India, higher attention is being paid to the environment, and new CO2 standards for automobiles is planned to be introduced. The company says that in the Indian automotive market where compact cars are the mainstream models, introduction of a 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 by promoting sustainable cars in the country and will contribute to “Make in India” initiative by the Indian Government, added the company in an official release.
The joint venture company will be established within 2017 and shall move to manufacturing phase at earliest possible timing. The initial capital expenditure will be 20 billion Japanese yen (Rs 1,188 Crore approx). The joint venture company will be capitalized at 2 billion Japanese yen (Rs 119 Crore approx), with the planned participation ratio of Suzuki 50%, Toshiba 40% and Denso 10% respectively.
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.
Recommended for you
Leave a Reply
Note: Comments that are unrelated to the post above get automatically filtered into the trash bin.
