Maruti and Toyota subsidiary to set up vehicle scrappage plant

NEW DELHI: As the government works out a scrappage policy for older vehicles in India, Maruti Suzuki has decided to set up a old vehicles dismantling plant along with a subsidiary of Toyota.

The venture between Maruti and Toyota Tsusho India will supply, dismantle and process end-of-life vehicles, and market and sell scrap and other products generated from such activities, sources told TOI.

In doing so, the Maruti-Toyota venture will be the second big automobile JV to work on a high-end vehicle scrappage plant in India, following the footsteps of Mahindra & Mahindra (through subsidiary Mahindra Accelo) that has partnered public-sector MSTC. The two have set up a recycling plant at Greater Noida.

Toyota Tsusho is already active in India and is in the manufacturing and trading of auto parts and components, steel shearing and processing, import and export of automobile components and logistics management services.

Its Japanese parent Toyota Tsusho Corporation is active in metals, parts and logistics, automotive, machinery, energy and projects, chemicals, electronics, food, and consumer services.

Maruti’s parent Suzuki and Toyota have a deeper relationship where they are buying minor equity into each other, apart from working out joint vehicles, engines and new technology plans for India and the global markets.