Suzuki Motor Corp.'s Indian arm Maruti Suzuki India Ltd. and Toyota Motor Corp. unit Toyota Tsusho India Pvt. Ltd. are teaming up to build a dismantling plant for old vehicles in India, The Times of India reported Sept. 10, citing sources.
The planned site will supply, dismantle and process old vehicles and market and sell scrap components and will be Maruti and Toyota Tsusho's strategy to support the Indian government's plans for a scrappage policy in the country, the report said.
Mahindra & Mahindra Ltd. already operates a similar facility through its subsidiary, Mahindra Accelo, and in partnership with MSTC Ltd., which trades in raw materials for various industries in India.
Maruti and Toyota Tsusho did not immediately respond to S&P Global Market Intelligence's requests for comment.
The report comes two weeks after the companies' parent companies, Japanese carmakers Toyota and Suzuki, agreed to buy stakes in each other as they collaborate on emerging technologies including self-driving cars and mobility services.
