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.
“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.
MSTI will be responsible for procuring and dismantling end-of-life vehicles (ELV). The process will include complete solid and liquid waste management as per Indian laws and globally approved quality and environment standards, the companies said in a release.
“Toyota Tsusho has started ELV recycling since 1970`s in Japan. We believe that we will be able to contribute to Indian society through our knowledge and experience for ELV business. The first vehicle dismantling and recycling unit of MSTI is just the initial step and we are eager to expand to pan-India base with Maruti Suzuki,” said Naoji Saito, chief executive, metal division, Toyota Tsusho.
Mahindra and Mahindra was the first auto manufacturer to set up a vehicle recycling station in India.
This article was first published on livemint.com.