Published: Sun, November 19, 2017
Science | By Cecil Little

2020 - the year cars in India starts going electric

2020 - the year cars in India starts going electric

In 2017, February both the companies have made a decision to work together while on yesterday, the agreement has been signed to make the work in progress. The MoU states that Suzuki will manufacture electric vehicles and Toyota will provide technical support.

Japanese auto giants Toyota Motor Corporation (TMC) and Suzuki Motor Corporation (SMC) have signed a memorandum of understanding (MOU) for a cooperative structure for introducing electric vehicles (EVs) in the Indian market on Friday. The firms said they meant to conduct a comprehensive study of activities for ensuring widespread acceptance and popular use of EVs in India. This includes concerns about the establishment of charging stations, human resources development that includes training for after-service technicians and systems for the appropriate treatment of burnt out batteries.

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As per the agreement, in addition to lithium-ion batteries, electric motors and other major components would be locally procured for production of EVs in India. Some of the other competitors such as Mahindra & Mahindra and Tata Motors have already started to manufacture electric vehicles for the domestic market. Toyota President Akio Toyoda said in September the company is a "little bit late" in the EV segment, even as rival automakers rush into the segment before China's cap-and-trade policy linked to zero- and low-emission vehicles kick in from 2019.

"Toyota-Suzuki joint venture can be clear win-win position for both manufacturers".

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Earlier this month, chief executive officer Toshihiro Suzuki had said, "As the industry shifts towards EVs, when it comes to India, our volumes are so large that I worry that we could be caught flat-footed if there was a sudden shift towards electrification".

For Toyota to entrust the bulk of this work to local partners is a demonstration of the specialisation that Chinese firms have in electric vehicle technology.

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