Panasonic and India-based auto-components maker Uno Minda Industries have established a joint venture (JV) for manufacturing automotive and industrial batteries in India.
The JV is aimed to produce for the growing market of storage batteries for two and four wheeler vehicles and uninterruptible power supplies in India. The JV will produce lead-acid SLI and lithium-ion batteries.
“The battery market in India is experiencing rising demand from various sectors, thereby providing immense opportunities to manufacturers to grow and operate in the market lucratively,” said Nirmal Minda, CMD at Uno Minda Industries.
The companies will invest $2.6 billion in the new JV. Japan’s Panasonic holds a 60% stake in the company and Uno Minda 40%.
The manufacturing plant of the JV will be located at Pant Nagar in the state of Uttrakhand. The production start is planned for June 2015 with a production capacity of 2m batteries by 2018.
The Indian automotive battery is expected to be worth around $300m per annum, according to a report by Frost & Sullivan. The demand for lithium-ion batteries is forecast to go up with a new electric mobility plan established by the Indian’s central government.