One of the biggest collaborations among automakers in recent years’ is one that was born in India between two of the largest Automobile manufacturers in the World, Maruti Suzuki and Toyota. Both of these Japanese manufacturers that were once considered each other arch rivals have now come together to share their strengths not just in India but in many more markets around the world. Recently, the two companies had announced their strategic tie-up that would have seen both companies share platforms, engines, hybrid and electric technology. Through the first phase, the two companies announced that their primary focus would be the Indian Market, with Maruti Suzuki sharing their Vitara Brezza Platform with Toyota in exchange for the Suzuki inherit the Corolla. Additionally, both companies had vouched to share the research and development of hybrid and electric cars bespoke for the Indian market. Now, to further consecrate their ties both companies have announced consideration towards more collaboration that will now not only focus on India but the rest of the world markets.
With respect to the Indian market, one of the primary mandates will be to focus on the widespread implementation of electric and hybrid technologies in Indian vehicles. This will be done through the local procurement of HEV systems, engines, and batteries. For Toyota, the renewed focus will bring the OEM supply of two compact vehicles built on Suzuki platforms (Ciaz and Ertiga) to Toyota in India.
|I. Toyota’s strengths: Provision of electrified technology and electrified vehicles|
|1. Supply THS (Toyota Hybrid System) to Suzuki.||Global|
|2. Widely spread hybrid electric vehicle (HEV) technologies in India through local procurement of HEV systems, engines, and batteries.||India|
|3. OEM supply of two new electrified vehicles built on Toyota platforms (RAV4, Corolla Wagon) to Suzuki in Europe.||Europe|
|II. Suzuki’s strengths: Provision of compact vehicles and powertrains|
|4. OEM supply of two compact vehicles built on Suzuki platforms (Ciaz and Ertiga) to Toyota in India.||India|
|5. Toyota to adopt newly developed Suzuki engines for compact vehicles. Such engines are to be supported by Denso and Toyota and will be manufactured at Toyota Motor Manufacturing Poland.||Europe|
|6. OEM supply of Suzuki’s India-produced vehicles (Baleno, Vitara Brezza, Ciaz, Ertiga) to Toyota, targeting the African market.||Africa|
|III. Collaboration in the fields of technological development and production, leveraging the strengths of both companies|
|7. Drawing upon Suzuki’s expertise in developing vehicles in India, joint development of a Toyota C-segment MPV and OEM supply to Suzuki.||India|
|8. Production of the Suzuki-developed compact SUV Vitara Brezza at Toyota Kirloskar Motor Pvt. Ltd. (TKM) from 2022.||India|
Toyota President Akio Toyoda said: “When it comes to vehicle electrification, which is expected to make further inroads, hybrid technologies are seen as playing a huge role in many markets, as from before. Widespread acceptance is necessary for electrified vehicles to be able to contribute to Earth’s environment. 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 said: “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.”
What is heartening to see is that both companies will be competing for sales in the same market, where they have collaborated to develop that same vehicle. In fact, quite contrary to common belief, both companies have said that they will even further collaborate such that they can achieve a more sustainable approach to future mobility in society within the confines of the law.