Suzuki, Toshiba, Denso to invest Rs 1185 crore in Li-ION battery plant in India

While Tesla, the US based electric car maker which has its own lithium ion battery plant, is still to decide its India entry despite an open invitation from Indian Prime Minister Narendra Modi, Japan’s  Suzuki Motor Corporation, Toshiba Corporation and Denso Corporation have signed an agreement to establish a joint venture company for production of automotive lithium-ion battery packs in India. This could perhaps be the first major step towards seeing more car makers making electric cars in India.

The joint venture company will be established within 2017 and shall move to manufacturing phase at earliest possible timing. The initial capital expenditure will be 20 billion Japanese yen (Rs 1185 crore approx.). The joint venture company will be capitalised at 2 billion Japanese yen, with the planned participation ratio of Suzuki 50%, Toshiba 40% and Denso 10% respectively.

With the Supreme Court and the National Green Tribunal getting stricter on the environment front and taking steps to curb vehicular pollution, this agreement among Suzuki, Toshiba and Denso could pave the way for building non polluting electric cars in India. Currently, Mahindra & Mahindra is the only company that has been pushing the sale of electric cars in the country.

The battery pack manufacturing joint venture by Suzuki Motor Corporation, Toshiba Corporation and Denso Corporation 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, a press note from Suzuki Motor Corporation said.