Toyota, Suzuki widen partnership; agree for joint vehicle production for sale in India, Africa

NEW DELHI: Japanese auto giant Toyota and compatriot Suzuki – that controls India’s largest carmaker Maruti – on Friday announced widening of their partnership, promising joint development and production of vehicles for sale in India, Africa and other global markets.


The two companies, that in March this year came out with an ambitious cross-badging arrangement for Maruti’s Baleno hatch, Vitara mini SUV and Toyota’s Corolla sedan, further widened the scope of their engagement, giving clarity on the nature of their partnership that so far does not involve equity purchases into each other.

“As members of Indian society, Toyota, along with Suzuki, will do its best to enhance freedom and fun in a future society of mobility and to make ‘Make in India’ vehicles cherished in Africa and in many other countries around the world,” Toyota president Akio Toyoda said in a statement.

As part of the enlarged agreement, Toyota’s Indian joint venture -- Toyota Kirloskar Motor – will produce models developed by Suzuki for sale in India through individual sales networks of the two companies. Also, the models developed by Suzuki will be exported to Africa and other markets by the companies.

“Suzuki was the first (among Japanese companies) to enter India, and, together with the people of India, has been a presence for pulling forward India’s automotive society. Such represents the spirit of ‘Let’s do it’ that I mentioned when announcing the conclusion of our memorandum of understanding on beginning concrete examinations for business partnership. Or, as I like to say, Suzuki is a company that puts into practice being ‘The Best in Town’,” Toyoda further said.

Expressing “heartfelt appreciation” over the agreement, Suzuki chairman Osamu Suzuki said that the enhanced partnership will help the companies target global markets effectively. “It is my hope that the new joint projects will contribute to the future success of both companies, not only in India, but also in the global market.”

The agreements follow an original MoU that the companies signed in February last year. The partnership will also see the them work on electric vehicles and allied technologies.

Friday’s statement said that Toyota and group company Denso Corporation will provide Suzuki with technological support for developing a compact, ultrahigh-efficiency powertrain.

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