Toyota and Suzuki Agree to Start Discussing Joint Projects for Technological Development, Vehicle Production, and Market Development

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Japanese automobile major Toyota’s India subsidiary is likely to produce models developed by Suzuki for sale in the Indian market through retail outlets of Maruti Suzuki and Toyota. These models, and others from Suzuki, will also be exported to markets like Africa for sale through the network of the two Japanese entities. Toyota’s local entity has a capacity to produce 310,000 vehicles a year but is able to use just half the capacity from the current sales.

Toyota Motor Corporation (TMC) and Suzuki Motor Corporation (SMC) agreed on Friday to start discussions on new joint projects in the fields of technological development, vehicle production and market development, the two entities said in a statement. Further to formalising an MOU towards a partnership in February last year, and revealing plans to share models in India earlier this March, Toyota Motor Corporation and Suzuki Motor Corporation today announced more details of their partnership.

R C Bhargava, chairman of Maruti Suzuki, said while Maruti Suzuki was facing a shortage of capacity, there was a surplus unused capacity with Toyota in India. “Toyota will be able to use the spare capacity and Maruti can expand sales. Since the products will be sold by both the brands, they should be distinct and not identical,” he said. Shekar Viswanathan, vice-chairman and whole-time director of Toyota’s India arm, said the move would help both the companies to improve the cost structure and give more meaning to the partnership.

The other big announcement is that Suzuki will be developing what they are terming as an ‘ultra-high-efficiency’ powertrain, with technological support from Toyota and Denso Corporation. The engine will be a new family and be available in both a petrol and a hybrid setup, and, in a company statement, Suzuki chairman Osamu Suzuki described it as vital to Suzuki. To begin with, Toyota will build Suzuki cars at its plant and will be put on sale through each of their networks. This arrangement will suit both sides as Toyota’s line that produces the Etios, Liva, Yaris, Corolla Altis, and Camry Hybrid is utilised to only about 30 percent of its 2,10,000 production capacity, whereas Maruti’s plants are running full.

The release also stated that the Suzuki models would be exported from India to Africa and other markets and be sold through both Toyota’s and Suzuki respective outlets, thus extending the cross-sharing arrangement globally.

#india #Market development #Maruti Suzuki #MOU #Partnership #Technological development #Toyota #Vehicle Production

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Harpreet S

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