Suzuki to form JV with Toshiba and Denso for lithium-ion batteries

The country's largest car maker Maruti Suzuki's parent company Suzuki Motor Corporation has entered into a joint venture agreement with Toshiba Corporation and Denso Corporation for production of lithium ion battery packs in India.

As per media reports, the three companies have signed a basic agreement for establishing the joint venture company.

The initial capital expenditure will be 20 billion Japanese Yen, out of which 2 billion yen will be utilised for the joint venture company. This will be further divided in the ratio of Suzuki-50 per cent, Toshiba -40 per cent and Denso-10  per cent.

The establishment of the JV will completed in 2017 and it will start the manufacture and supply of lithium-ion battery packs in India at the earliest. The JV will promote sustainable cars in India and contribute to 'Make in India' initiative of the Indian government.

This JV will give a boost to the Indian automotive sector as lot of companies are now focusing on manufacturing electric vehicles and sourcing batteries locally, especially lithium-ion batteries.