Toyota and Suzuki agree to collaborate on key areas

Toyota and Suzuki agree to collaborate on key areas

Very soon, you would be able to buy a Toyota Vitara Brezza, while Suzuki will able to ‘electrify’ its products, thanks to Toyota’s expertise in hybridisation and electrification of vehicles. Suzuki and Toyota signed an MoU in February 2017 for partnership in various areas in mobility. Taking the joint venture to the next level, both companies released have released a joint statement stating that they will work together in key areas to turn their respective weakness into strengths while competing with each other freely and fairly.

The plan

It is a well-known fact that Suzuki doesn’t rule the market when it comes to the premium sedan segment in the country, while Toyota lacks expertise when it comes to compact SUVs, hatchbacks and C-segment vehicles. Both companies have agreed to build on each other’s strength and expand their business in India as well as in global markets. In India, Toyota will provide its electrification technology to Suzuki through local procurement of hybrid electric vehicles, engines, and batteries. Meanwhile, Suzuki will supply its Ciaz and Ertiga platforms to Toyota, to strengthen the latter’s presence in the C-segment. Production of the Toyota badged Vitara Brezza will begin from 2022. This is a smart move by both companies to keep the costs in check rather than spending millions in developing a whole new platform, powertrains and so on.

Check out our review of the Maruti Suzuki Ciaz

Globally, Toyota will supply its Corolla platform to Suzuki and make use of Suzuki’s newly developed engines in its compact vehicles. Suzuki will also supply the made in India Baleno, Vitara Brezza, Ciaz and Ertiga to Toyota for strengthening business in South Africa.

Toyota President Akio Toyoda on the JV

“Through our new agreement, we look forward to the wider use of hybrid technologies, not only in India and Europe but around the world. At the same time, we believe that the expansion of our business partnership with Suzuki—from the mutual supply of vehicles and powertrains to the domains of development and production—will help give us the competitive edge we will need to survive this once-in-a-century period of profound transformation. We intend to strengthen the competitiveness of both our companies by applying our strong points and learning from each other.”

Suzuki Chairman Osamu Suzuki, on the collaboration with Toyota

“At the time we announced our scope of cooperation in May last year, I spoke that we will strive for success globally. I have seen progress in the partnership since then, and it is my pleasure to be able to make this announcement today regarding the status of partnership on a global basis, including Europe and Africa. In addition, we appreciate the kind offer from Toyota to let us make use of their hybrid technology. We will continue our utmost efforts.”

Check out our review of the Maruti Suzuki Ertiga

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