Japanese carmaker Suzuki Motor Corp., which owns 56 per cent in the country's leading carmaker Maruti Suzuki India, has entered into a joint-venture with Toshiba Corporation and Denso Corporation for automotive lithium-ion battery packs in India.

The new agreement is expected to meet the needs of hybrid, electric and other alternative fuel for the Indian market where fuel efficiency norms and stringent emission standards are kicking in.

Suzuki, in a statement, said that higher attention is being paid to environment and the new CO2 standards for automobiles in India. "In the Indian automotive market where compact cars are the mainstream models, introduction of sustainable technology suitable for such affordable cars is required. The battery pack manufacturing joint venture by the three companies will realise a stable supply of lithium-ion battery packs in India in the course of promoting sustainable cars in the country and will contribute to 'Make in India' initiative by the Indian Government," Suzuki said in a statement.

The joint venture is expected to come up within 2017 and the battery manufacturing is expected to commence shortly. The initial capital expenditure will be 20 billion Japanese yen (approx Rs 1,200 crore). It will be capitalised at 2 billion Japanese yen (approx Rs 120 crore). Suzuki will have 50 per cent stake in the new entity while Toshiba will hold 40 per cent and Denso the rest 10 per cent.

The establishment of the joint venture company will be further examined in details by the three companies, and will be subject to approval by respective authorities in accordance with applicable competition laws.