There has been a drastic rise in the cooperation and investment amid both Japan and India owing to the visit of Japanese Prime Minister Shinzo Abe in Ahmedabad, Gujarat to meet the Indian Prime Minister, Narendra Modi.
Suzuki Motor Corporation, the Japanese automaker which holds a stake of 53.21% in India-based largest automaker Maruti Suzuki India, has declared its plans to enhance the capacity of the plant based in Hansalpur, Gujarat. This facility will also lay the foundation for India’s first lithium-ion battery manufacturing plant.
The company has already poured Rs 9,600 Crore to set up two assembly lines for other transmission and engine production unit. And now to enhance the capacity, it will invest a total of Rs 13,400 Crore. The Hansalpur facility is the only plant that is fully owned by the Suzuki Motor Corporation in India.
The Prime Ministers of both the nations officially inaugurated the Suzuki Motor Gujarat plant for engine and car manufacturing. The aim to make hybrid and electric cars will come into result with joint efforts led by Denso, Suzuki Motor, and Toshiba in India for the worldwide markets.
The company has invested approximately $530 Million (Rs 3,348 Crore) for setting up the first assembly line at the facility, while $180 Million has been poured in by the trio of Denso, Toshiba, and Suzuki for the establishment of lithium-ion battery manufacturing plant, which is expected to open by 2020.
In the operation of manufacturing, Toshiba will contribute with its cell modules and Denso with its technology platform. The equity stake split amid the companies in terms of battery joint endeavors will be Suzuki (50%), Toshiba (40%), and Denso (10%). The main driver of the joint venture, Suzuki Motor Corporation will be targeting to take the benefits of lithium-ion batteries production in its prominent global market, India, where the government is eager to increase the adoption of electric vehicles.
Given the sharp focus on fully electric mobility in India by 2030, Maruti Suzuki India will reap profits sizably from this Japanese joint venture.
As per the Chairman of Suzuki Motor Corp., Osamu Suzuki, “The batteries will be utilized for electric and hybrid vehicles that are manufactured in India and these authentically made-in-India automobiles will be exported to international markets.”
“We intend to maintain the efforts to motivate Make in India initiative ahead. The plant is projected to be fully functional from 2020,” he added.