Japan's Suzuki Motor Corporation has joined hands with Toshiba Corporation and Denso to set up a plant in India to produce lithium ion batteries, entailing an investment of 20 billion yen (nearly Rs12 billion).

The three Japanese entities have signed an agreement to form a joint venture (JV), which is aimed at tapping into the growing popularity for electric vehicles in India. 

The JV firm will come up this year and move to manufacturing phase at the earliest, Suzuki Motor Corporation said in a statement.

"The initial capital expenditure will be 20 billion Japanese yen. The joint venture company will be capitalised at 2 billion Japanese yen, with the planned participation ratio of Suzuki (50 per cent), Toshiba 40 per cent and Denso 10 per cent, respectively," it added.

The JV company will be further examined in detail by the three stakeholders and will be subject to approval by respective authorities in accordance with applicable competition laws.

On the rationale for such a move, Suzuki said higher attention is being paid to environment and new CO2 standards for automobiles are being planned to be introduced in India.

In the Indian automotive space where compact cars rule, introduction of sustainable technology suitable for such affordable cars is required, it added.

The joint venture will ensure 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 government, Suzuki said.

Source: Timesofoman