Suzuki Motor Corporation, the parent company of Maruti Suzuki, has laid the foundation stone for India's first lithium-ion battery manufacturing plant along with an expansion of capacity in its Hansalpur plant in Gujarat.
Japanese Prime Minister Shinzo Abe and India's PM Narendra Modi officially inaugurated Suzuki Motor Gujarat's manufacturing plant for cars and engines in Hansalpur and laid the foundation stone for India's first lithium-ion battery plant.
The lithium-ion battery plant is being set up jointly between Suzuki Motor, Toshiba and Denso to produce electric and hybrid cars in India for global use. Suzuki Motor Corporation along with Toshiba and Denso has earmarked Rs 1,137 crore for the lithium-ion battery manufacturing plant which is expected to be ready by 2020.
Toshiba will supply cell modules, while Denso will contribute its expertise by sharing the technology platform. The joint venture sees the equity stake split between Suzuki (50 percent), Toshiba (40 percent) and Denso (10 percent).
The plant will manufacture and supply the Electric Vehicle (EV) batteries to the Suzuki plant in Gujarat which will in turn manufacture EVs and Hybrids cars for export. With India ready to switch to EVs by 2030, Suzuki will immensely gain from this plant.
Maruti Suzuki holds more than 50 percent market share in India's passenger vehicle segment, now along with India's first lithium-ion battery manufacturing plant, the Indo-Japanese will benefit in producing new EVs and has all the potential to lead the EV segment in India.