New Delhi: Suzuki Motor Corporation on Friday said that it has reached a basic agreement with Toshiba Corporation and Denso Corporation for establishment of a joint venture company which will produce automotive lithium-ion battery packs in India.
"Suzuki Motor Corporation (Suzuki), Toshiba Corporation (Toshiba) and Denso Corporation (Denso) have reached basic agreement on establishing a joint venture company for production of automotive lithium-ion battery packs in India, and signed the agreement," the company said in a statement on its website.
"In India, higher attention is being paid to environment, and new CO2 standards for automobiles is planned to be introduced."
The company elaborated that compact cars are the mainstream models in India and that introduction of sustainable technology suitable for such affordable cars is required.
"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 and will contribute to 'Make in India' initiative by the Indian government," the statement said.
"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.
"The joint venture company will be capitalized at two billion Japanese yen, with the planned participation ratio of Suzuki (at) 50 per cent, Toshiba (at) 40 per cent and Denso (at) 10 per cent respectively," it added.
The company added that establishment of the JV company is subject to the approval by respective authorities in accordance with applicable competition laws.