Suzuki Motor Corporation, Toshiba Corporation and Denso Corporation – have agreed to form a joint venture company for production of automotive lithium-ion battery packs in India.
In India a new CO2 standards for automobiles… is planned to be introduced.
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 realise 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,” stated the three companies in a press statement.
The release stated that the joint venture company will be established within 2017 and will move to manufacturing phase at earliest possible timing. Three companies are expected to spend Yen 20 billion (about Rs 1180 crore) as the initial capital expenditure for the JV. While Suzuki will hold 50 percent stake in the proposed joint venture company, Toshiba and Denso will own 40 percent & 10 percent respectively.
As per Indian Society of Manufacturers of Electric Vehicles (SMEV) estimate, sale of electric vehicles in India is expected to reach 6.7 million by FY20 from 22,000 units in FY16.