Japanese automaker Suzuki has stated that it will partner with Toshiba and Denso to manufacture lithium-ion batteries for electric vehicles in India.
The joint venture firm will be established this year and will be headed by Suzuki with 50 percent share. Toshiba and Denso will have 40 percent and 10 percent share respectively.
A statement from Suzuki read. "The battery pack manufacturing joint venture by the three companies will realise stable supply of lithium-ion battery packs in India in the course of promoting sustainable cars in the country and will contribute to the Make in India initiative by the Indian government."
This move from Suzuki will certainly help Indian electric vehicle market. The cost of the batteries will go down which in turn will boost the sales of electric vehicles in the country.
Currently, the cost of the lithium-ion batteries accounts for 50 percent of the price of the electric vehicles. So, the electric vehicles are expensive compared to the conventional cars. Mahindra & Mahindra has been aggressive in the electric vehicle segment in India.
Managing Director of Mahindra and Mahindra, Pawan Goenka said, "We would welcome such a move. We are doing our bit by building power trains and vehicles. Anybody who contributes to chargers and batteries we will be very happy to see that as they will build the ecosystem for the country."
The Indian market has a huge demand for compact and affordable cars. So, the introduction of such sustainable technology will suit such vehicles. Local production of lithium-ion batteries will help India to reduce the dependence on fossil fuel.
India aims to sell around six million electric vehicles by 2020. But currently, the sales of EVs are very low in the country. As per data from Society of Manufacturers of Electric Vehicles, the sales of electric vehicles stood at 16,000 units in 2014-15.