Suzuki and Toyota will soon make dismantle and recycle business a trend in automakers industry

Suzuki Motor Corp and Toyota Motor Corporation will start a joint-venture company to dismantle and recycle vehicles in India as Japanese automakers expand their alliance in the country.

Joint Venture, Maruti Suzuki Toyotsu India
Pvt. Ltd (MSTI), will be owned by Suzuki Unit, Maruti Suzuki India Ltd and Toyota Tsushu India Limited, a subsidiary of Toyota. It will build the first vehicle dismantling unit in Noida with the capacity to handle 2,000 vehicles per month. Similar facilities will also be opened in other parts of India.

Kenichi Ayukawa, Managing Director of Maruti Suzuki, India's largest automaker, said the partnership will allow Suzuki and Toyota to promote recycling and support resource optimization and conservation while using environmentally friendly systems and processes. "Disposal of old vehicles in a scientific and environmentally friendly way will help reduce pollution and make roads safer. A team of MSTI experts will dismantle vehicles using international technology and international standards."

The announcement comes as the Ministry of Roads is working on a vehicle scrapping policy to reduce the number of old vehicles on the roads and to reduce vehicle pollution in major cities. Mahindra and Mahindra, based in Mumbai, were the first to set up a vehicle recycling unit in India.

MSTI will be responsible for the acquisition and dismantling of unused vehicles (ELV). This process will include the full management of solid and liquid waste following Indian laws, quality standards and environmental standards worldwide. They did not disclose the investments to be made in the company.

With the federal government working on a scrapping policy, most carmakers are expected to set up their scrap yards in the hope of taking advantage of an additional source of income in the future. The automobile industry has been working with the government on scrapping policy in recent years, which is expected to increase demand for cars while car sales growth is expected to remain modest due to the emergence of commuting and new regulations that make vehicles more expensive.

Toyota Tsusho began recycling ELV in the 1970s in Japan. We believe that we can contribute to Indian society through our knowledge and experience in the work of ELV. Noji Saito, executive director of Toyota Tsusho Metal Division, said the first MSTI vehicle dismantling and recycling unit is just a first step and we are keen to expand to a pan-India base with Maruti Suzuki.

Toyota and Suzuki first announced their partnership in 2017 to develop affordable electric and hybrid cars for the Indian market. They decided to establish a lithium-ion battery manufacturing plant in Gujarat in collaboration with Toshiba Corp., for hybrid and electric vehicles. Subsequently, companies expanded their cooperation to identify cross-road vehicles, powertrain supplies, joint vehicle development and exports.

In August this year, companies deepened their relations by buying small shares with each other. In addition to manufacturing electric and hybrid models, Suzuki and Toyota now plan to jointly develop independent driving technology.

The two are also expected to venture into space for affordable electric cars in India in the coming years.

"We will be introducing an electric car with a built-in battery, but I can't reveal anything else at this time," said Shigeki Terashi, executive vice president and board member of Toyota before the Tokyo Motor Show.

Thumbnail image source: Overdrive
  • Share
Subscribe now
Apply For Home Loan