Toyota and Suzuki have finalised the memorandum of understanding (MOU) on moving forward in considering a cooperative structure for introducing electric vehicles (EVs) in the Indian market in around 2020. The agreement stems from the two companies having concluded on February 6 this year a MOU on beginning considerations for business partnership, after which they began discussing, among other topics, the dissemination of vehicle electrification technologies in India.
Specifically, Suzuki is to produce EVs for the Indian market and will supply some to Toyota, while Toyota is to provide technical support. Additionally, Both the companies intend to conduct a comprehensive study of activities for the widespread acceptance and popular use of EVs in the Indian market. Such activities encompass the establishment of charging stations, human resources development that includes training for after-service technicians employed throughout sales networks, and systems for the appropriate treatment of end-of-life batteries.
Under the leadership of Indian Prime Minister Narendra Modi, India is endeavoring to rapidly promote an automotive transition to EVs. Suzuki has already announced that it intends to construct a lithium-ion battery plant on the grounds of its recently opened automobile plant in the Indian state of Gujarat. As envisioned by the agreement, in addition to lithium-ion batteries, electric motors and other major components would be locally procured for the production of EVs in India, helping the Indian government fulfill its “Make in India” initiative, even in the field of EVs.