Japanese automobile majors Toyota and Suzuki have decided to work together for the introduction of electric vehicles (EVs) in India by 2020.
Suzuki, which enjoys a 50 percent share of the domestic passenger vehicle (cars, vans and utility vehicles) market through subsidiary Maruti , has decided to produce electric vehicles in response to a clear government mandate seeking a shift to green mobility. The two Japanese companies have decided to work together choosing India, which is the world fifth-largest car market, as their first base of operations after signing a global agreement in February.
The two automobile giants have also concluded another tie-up on moving forward in considering a cooperative structure for introducing EVs in the Indian market. Besides producing cars, the companies would work on developing an ecosystem related to EVs through investments in charging facilities and service network.
“The two companies together will bring the technology and Suzuki will set up manufacturing facilities through Maruti,” R C Bhargava, chairman at Maruti Suzuki, told Business Standard.
Suzuki is expected to produce EVs and supply some vehicles to Toyota, which would chip in with its technical support. Toyota and Suzuki also plan to conduct a comprehensive study of activities for the widespread acceptance of EVs in India. Such activities encompass the establishment of charging stations, human resources development — training for after-service technicians employed throughout sales networks — and systems for the appropriate treatment of end-of-life batteries, Suzuki said in a statement.