In a bid to enter India’s emerging electric vehicle market, Suzuki Motor Corp, the largest carmaker and owner of Maruti Suzuki, has hired Toshiba Corp and Denso Corp to manufacture automotive lithium-ion battery packs in India.

The move could pave the way for the development of lithium-ion battery packs in India. Providing affordable power systems and drive electrification to the Indian compact car market, India is expected to grow to be the third largest automotive market by 2020 years to 2021.

The joint venture is scheduled to be established in 2017 and will enter the initial production phase. The initial capital expenditure is 20 billion yen or Rs 11.84 billion. The capital of the joint venture is 2 billion yen and the investment plan is 50% Suzuki, 40% Toshiba and 10% Denso.

In a statement, Japan’s Suzuki said that with India becoming increasingly concerned about the environment with the release of new CO2 emission standards, there is a need to introduce sustainable technologies suitable for economy cars.

“In the Indian automobile market, which is dominated by small cars, there is a need to introduce sustainable technologies suitable for such inexpensive cars. The battery pack manufacturing joint venture of these three companies will make lithium-ion battery packs a reality in this process. Contributing to the stable supply and “manufacturing” of sustainable cars in India. This is another important step taken by Suzuki Motor after signing a Memorandum of Understanding (MoU) with Toyota Motor to meet the future needs of eco-friendly mobility. Exploring Alternative Fuel Technologies with Self-Driving Cars

The global leaders of Suzuki and Toyota recently met Prime Minister Modi and are keen to collaborate on manufacturing and clean technologies. The collaboration will enhance Toyota’s global leadership in technology (electric and self-driving) and manufacturing, and Suzuki’s strength in small car manufacturing, especially in India.

The joint venture will be subject to further detailed scrutiny by the three companies and approval from their respective authorities under applicable competition laws, the joint venture statement added.