Suzuki Motor India, Toshiba and Denso have reached a basic agreement on establishing a joint venture company for production of automotive lithium-ion battery packs in India, the agreement for which has already been signed. With new CO2 standards for automobiles planned to be introduced in India, higher attention is being paid to environment and the introduction of sustainable technology suitable for affordable cars will make a world of difference. 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.
The joint venture company will be established within 2017 and shall move to manufacturing phase at the earliest. The initial capital expenditure will be 20 billion Japanese yen. 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 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. The tie-up would be a big boost to the Indian automotive infrastructure where companies are moving towards manufacturing electric vehicles and source batteries, especially lithium-ion batteries. A joint venture like this will certainly boost these prospects in India.