Toyota looking to produce and jointly sell models developed by Maruti Suzuki

Team OD Updated: May 25, 2018, 07:30 PM IST

In another development to the recent the decision by Toyota and Suzuki to collaborate at various levels, the two Japanese carmakers have now decided to start discussing new joint projects in the fields of technological development, vehicle production, and market development. Since the MoU was first signed on February 6, 2017, the two firms have been pursuing concrete forms of cooperation and have announced the mutual supply of vehicles for the Indian market and other joint efforts. Meanwhile, the two companies have also been broadening the scope of their partnership considerations to include joint efforts related to production and market development.

These latest discussions will centre around Denso Corporation and Toyota to provide Suzuki with technological support for a compact, ultrahigh-efficiency powertrain to be developed by Suzuki. Notably, Toyota Kirloskar Motor Private Ltd. (TKM) will produce models developed by Suzuki for sale in India. These cars will be available through both, Toyota and Suzuki's brand network. Further, these co-developed vehicles will also be sold in Africa and other markets. In these countries too, the cars will be sold through both companies brand networks with mutual support in terms of logistics and services.

This development, as has been the general idea of this entire partnership, looks like a case of both carmakers trying to strengthen their position in sections of the Indian market where they haven't traditionally fared well. This agreement will give Toyota stronger presence in the small car segment while Suzuki will also now have products in the higher reaches of the Indian market. So far, Suzuki has been dominant with their small car offerings while Toyota has seen strong sales of their larger sedans, MPVs and SUVs.


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