Suzuki and Toyota to jointly introduce electric vehicles in India by 2020

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Foreign vehicle manufacturers are allowed to operate in China by forming joint ventures with Chinese partners. Hiroji Onishi, head of the Japanese automaker's Chinese operations, discussed the possibility Friday at the Guangzhou International Automobile Exhibition.

When China's green auto quotas take effect in 2019, automakers will need to accumulate credits by producing and selling enough NEVs to hit a threshold equivalent to 10 percent of annual sales.

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Toyota likewise plans to inaugurate an EV model, designed in Japan, in China in 2020 aside from the all-electric battery vehicle reproductions industrialized by its resident cooperative ventures. As the green cars of china's quotas come into force in 2019, auto companies will have to collect credits by creating and marketing sufficient NEVs to reach an inception equal to the 10 percent of the reported annual sales - an expected upsurge to 12 percent for 2020. Toyota likely considered all these factors in deciding on this unusual arrangement.

This is thanks to its parent company Suzuki Japan, which on Friday, announced that it had concluded a memorandum of understanding (MoU) with Toyota Motor Corporation (Japan), in considering a co-operative structure for introducing EVs in the Indian market around 2020. The specific models and volumes have yet to be determined.

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We are talking about charging stations for electric vehicles and services to service the batteries. New Delhi likely hopes to use the electrification push to bolster the country's auto industry as well. On one side, it gives access to Suzuki to invest their surplus funds, and on other, Toyota can eye a bigger market share in India by learning frugal techniques from Suzuki in India, ' said Puneet Gupta, Associate Director, Automotive Forecasting, IHS Automotive.

This seismic shift towards NEVs has prompted a flurry of electric vehicle deals and new launches as manufacturers worldwide race for a share of the world's largest auto market.

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