Maruti Suzuki, Toyota Tsusho To Set Up Vehicle Recycling Units In India
A pile of crushed cars sit at a vehicle scrapyard in Serbia. (Photographer:Oliver Bunic/Bloomberg)

Maruti Suzuki, Toyota Tsusho To Set Up Vehicle Recycling Units In India

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Maruti Suzuki India Ltd. and Japan’s Toyota Tsusho Group have formed a joint venture for vehicle dismantling and recycling in India—a move that strengthens the Toyota-Suzuki alliance.

The joint venture comes at a time India's vehicle scrappage policy is in the works. On Oct. 16, the transport ministry issued draft guidelines for setting up a vehicle scrappage facility in an attempt to legalise the industry in India.

Maruti Suzuki will hold 50 percent stake in Maruti Suzuki Toyotsu India Pvt. Ltd while Toyota Tsusho Group companies—Toyota Tsusho Corporation and Toyota Tsusho India Pvt Ltd—will own the rest.

The joint venture will set up its first vehicle dismantling and recycling unit in Noida, Uttar Pradesh, by 2020-21 and will add more such facilities across India subsequently, the companies said in a statement.

It will be responsible to procure and dismantle end-of-life vehicles. The process will include complete solid and liquid waste management according to Indian laws and globally approved quality and environment standards, the companies said.

The Noida unit will have an initial capacity to dismantle around 2,000 vehicles per month. Maruti Suzuki Toyotsu India will source vehicles from dealers as well as directly from customers.

"Through this joint venture, we aim to promote recycling and support in resource optimization and conservation while using environment friendly systems and processes,” said Kenichi Ayukawa, chairman and managing director at Maruti Suzuki.

Scrapping of older vehicles in a scientific and environment-friendly manner will help to reduce pollution and also make roads safer. A team of experts at Maruti Suzuki Toyotsu India will dismantle the vehicles using international technology and global standards, he added.

Toyota Tsusho Corporation's CEO (Metal Division) Naoji Saito said, “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.”

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