Toyota and Suzuki to jointly build electric cars in India

With electric vehicles fast becoming the future of transportation, Toyota Motor Corporation and Suzuki Motor Corporation have signed a memorandum of understanding (MoU) for jointly manufacturing electric vehicles in India. The date for introduction for these vehicles is lated to be 2020. India is moving towards EVs very fast and the government is also pushing automobile manufacturers to go electric.

The aim is to be all electric by 2030. The two japanese auto giants have hence com together to explore possibilities and make vehicles which will jointly benefit both.

Earlier Toyota and Suzuki had come out with a business partnership for mutual benefit. This MOU is a product of that exploration. The two companies are said to be aiming to work towards vehicle electrification technologies in India.

If we get into more details, it emerges that Suzuki will be producing EVs for the Indian market and will also supply the same to Toyota. Onthe other hand, Toyota shall provide technical support to Suzuki.

Both companies together will conduct a comprehensive study of activities for the widespread acceptance and popular use of EVs in India. The study will include establishing of charging stations, training of technicians and other workforce, systems for the correct treatment of end-of-life batteries, information and knowledge about electric vehicles.

Suzuki had earlier announced that it is looking at constructing a lithium-ion battery plant on the grounds of its recently opened automobile plant in the Indian state of Gujarat. The agreement between Toyota and Suzuki further mentions that lithium-ion batteries, electric motors and other major components would be locally procured for the production of EVs in India. This will give a major boost and also reduce manufacturing costs of EVs. Reduced costs will translate into more affordability for electric cars and thus this segment will rapidly rise.

India is already the no.1 market for Suzuki cars and bikes. Toyota also enjoys a decent market share and a strong brand equity in India.