Expanding their collaboration in the Indian market, Japanese automakers Suzuki Motor Corp and Toyota Motor Corp will foray into the vehicle dismantling and recycling business through their joint venture, Maruti Suzuki Toyotsu India Private Limited (MSTI).
The equal joint venture between Maruti Suzuki India Ltd, Suzuki’s Indian subsidiary, and Toyota Tsusho India Ltd, a subsidiary of Toyota Motor Corp, will set up the first vehicle dismantling unit in Noida with a capacity to handle 2000 vehicles per month. The joint venture will subsequently have similar scrapyards in different parts of the country.
The announcement from the Japanese behemoths comes at a time when the Ministry of Road Transport and Highways has started working on its policy for vehicle scrapping to reduce the number of old vehicles on Indian roads.
Kenichi Ayukawa, managing director, Maruti Suzuki, said through the joint venture both companies aim to promote recycling and support resource optimization and conservation while using environment-friendly systems and processes.
“Scrapping of older vehicles in a scientific and environment-friendly manner will help reduce pollution and also make roads safer. A team of experts at MSTI will dismantle the vehicles using international technology and global standards,” he added.