Maruti Suzuki and Toyota are expanding their partnership in the Indian market, by venturing into the vehicle dismantling and recycling business. The two companies have announced a joint venture called Maruti Suzuki Toyotsu India Private Limited (MSTI), which will start operations from FY 2020-21. Both companies will each own a 50 percent equity.
The first recycling and dismantling unit will be set up in Noida, with a capacity of 2,000 vehicles per month.
Maruti Suzuki India Managing Director and CEO, Kenichi Ayukawa, when announcing the venture, said that end-of-life vehicles (ELVs) will now be dismantled in an environment friendly manner.
MSTI will allow customers to dispose off their vehicles through an authorised dismantler. Customers will also get a certificate of destruction, to be used for de-registration at the RTO.
“We aim to promote recycling and support in resource optimization and conservation while using environment friendly systems and processes,” Ayukawa said.
“Scrapping of older vehicles in a scientific and environment friendly manner will help to reduce pollution and also make the roads safer. A team of experts at MSTI will dismantle the vehicles using international technology and global standards,” he added.