2020 - the year cars in India starts going electric
19 November, 2017, 01:59 | Author: Alicia Barber
"The agreement stems from the two companies having concluded on February 6 this year an MOU on beginning considerations for business partnership, after which they began discussing, among other topics, the dissemination of vehicle electrification technologies in India", a joint statement said.
The two Japan-based firms Toyota Motor Corp and Suzuki Motor Corp have agreed to cooperate on the sale of plug-in electric vehicles in India onwards from around 2020 or so, with the intention being to jointly grow market share there.
Both the companies also plan a comprehensive study on charging stations, training for sales network staff members, and treatment of batteries, Suzuki said in a statement. Recently, the Andhra Pradesh government has signed an MoU with Toyota Kirloskar to launch its Prius PHEV and Small EV commuter vehicles for official purposes and even a deal with the Energy Efficiency Services Limited has been made to provide 1500 electric vehicles creating an impetus in the state to adopt more electric vehicles.
Though Maruti Suzuki is the biggest carmaker in the country by some distance, its parent company Suzuki Motor Corp lacks the requisite technology to make electric cars.
The partnership could help Toyota to expand in India's massive auto market, where drivers prefer the type of affordable compact vehicles in which Suzuki excels.
As per the agreement, in addition to lithium-ion batteries, electric motors and other major components would be locally procured for production of EVs in India.
Suzuki has already announced that it intends to construct a lithium-ion battery plant along with its partners in Gujarat, where it now operates a manufacturing plant supplying automobiles exclusively to its Indian arm Maruti Suzuki.
Traditionally, Chinese joint venture partners have been exactly that - a joint partner sharing varying levels of the design and manufacture processes.
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