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The country’s largest passenger vehicles maker Maruti Suzuki India (MSIL), which until now did not have technology to make electric vehicles (EVs), said it may launch a car run on battery before 2020.
This is thanks to its parent company Suzuki Japan, which on Friday, announced that it had concluded a memorandum of understanding (MoU) with Toyota Motor Corporation (Japan), in considering a co-operative structure for introducing EVs in the Indian market around 2020.
The agreement stems from the two companies having concluded on February 6, an MoU on beginning consideration for a business partnership, after which they began discussing, among other topics, the dissemination of vehicle electrification technologies in India, the company said.
“Specifically, Suzuki is to produce EVs for the Indian market and will supply some to Toyota, while Toyota is to provide technical support. Additionally, Toyota and Suzuki intend to conduct a comprehensive study of activities for the widespread acceptance and popular use of EVs in India,” Suzuki Global said in a statement.
Such activities encompass the establishment of charging stations, human resources development that includes training for after-service technicians employed throughout sales networks and systems for the appropriate treatment of end-of-life batteries, it said.
“Under the leadership of Prime Minister Narendra Modi, India is endeavouring to rapidly promote an automotive transition to EVs,” Suzuki said.
Suzuki has already announced that it intends to construct a lithium-ion battery plant on the grounds of its recently opened automobile plant in Gujarat.
As envisioned by the agreement, in addition to lithium-ion batteries, electric motors and other major components will be locally procured for the production of EVs in India, helping the Indian government fulfil its 'Make in India' initiative, even in the field of EVs, it added.
According to analysts, Suzuki being the market leader in India desperately needs an EV and cannott give away this opportunity to Tata Motors and Mahindra & Mahindra.
“Toyota-Suzuki joint venture can be clear win-win position for both manufacturers. On one side, it gives access to Suzuki to invest their surplus funds, and on other, Toyota can eye a bigger market share in India by learning frugal techniques from Suzuki in India,’ said Puneet Gupta, Associate Director, Automotive Forecasting, IHS Automotive.
Meanwhile, Toyota Kirloskar Motor, the Indian arm of Toyota Global, and the Andhra Pradesh government on Thursday signed an MoU to take up a feasibility study towards introduction of ‘Prius PHEV’ and ‘Small EV Commuter’ in the ambitious smart city project of Amaravati.
The MoU aims to work together to solve the grave issue of pollution ensuring smooth introduction of plug-in hybrid and electric vehicles in the State.
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