Two popular Japanese car makers, Toyota Motor Corp and Suzuki Motor Corp have announced a collaboration to build electric vehicles for India. Both companies signed a MoU in February this years and the progress towards the joint venture have already started.
The first product is expected to be launched in 2020. The joint venture will benefit from local manufacturing, therefore keeping the price of the final product in check and the technological dominance these companies have. Maruti Suzuki, a subsidiary of the Japanese brand Suzuki Motor Corp. already has the biggest market share when it comes to automobile sales and has the largest sales network in the Indian subcontinent.
Suzuki Motor Corp. will take the charge of R&D and manufacturing of the final product and the same will be supplied to Toyota also. Suzuki has already allotted a section of their Gujarat factory to manufacturing Lithium-ion batteries and the same will be done in collaboration with Toshiba Corporation and Denso. The said part is the most crucial and costly part of EVs is being worked out initially.
Other than manufacturing, Suzuki Motor Corp. will also take care of local sourcing of the main components, like the electric motor, assisting the Indian Government in its Make In India initiative. Both the carmakers will do a comprehensive study about widespread acceptance of EVs in India and educate the citizens for popularization of EVs. The study will also include the establishment of charging stations, human resources, wherein, the sales and service network will be established and a system for recycling end-of-life batteries.
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