In the joint venture -- Maruti Suzuki Toyotsu India Pvt Ltd (MSTI) -- Maruti Suzuki India (MSI) will have 50 per cent share, while Toyota Tsusho Group companies -- Toyota Tsusho Corporation and Toyota Tsusho India Pvt Ltd -- will hold the remaining stake.
MSTI will set up its vehicle dismantling and recycling unit in Noida, Uttar Pradesh within 2020-21 and will add more such units across India, the companies said in a statement.
It will be responsible to procure and dismantle end-of-life vehicles (ELVs). The process will include complete solid and liquid waste management as per the Indian laws and globally approved quality and environment standards, they added.
The Noida unit will have an initial capacity to dismantle around 2,000 vehicles per month. MSTI will source vehicles from dealers as well as directly from customers.
Commenting on the development, MSI Managing Director & CEO Kenichi Ayukawa said, "Through this Joint Venture, MSTI, we aim to promote recycling and support in resource optimization and conservation while using environment friendly systems and processes".
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.
Toyota Tsusho Corporation CEO (Metal Division) Naoji Saito said TTC had 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," he added.
Suzuki and Toyota had earlier strengthened their alliance with the partners picking up stake in each other while also agreeing to share production facility, vehicles and technologies for selling vehicles, both in India and other global markets.