The 'Make in India' program was introduced to the Indian community as well as manufacturers across various industries in 2015. This initiative taken up by the current Government of India has encouraged the automotive sector in the country and carmakers are looking at bringing new technologies at affordable prices in their future products. A recent tie-up between Toyota and Suzuki has hinted at new, more aggressively priced products from both Japanese manufacturers. The partnership will involve both manufacturers sharing their technological advancements with each other as well as platform sharing. The chiefs of the two companies, Akio Toyoda, President, Toyota Motor Corporation and Osamu Suzuki, Chairman, Suzuki Motor Corporation met the Prime Minister of India, Narendra Modi and discussed the way forward for both the multi-nationals.
According to the official PMO website, “The partnership is expected to bring together Toyota’s global leadership in technology and manufacturing, with Suzuki’s strength in the manufacture of small cars, especially in India. It is expected to enable India to use new technological developments. Further, high volumes will enable local manufacture of components required for these technologies. Hence, the partnership will promote Make in India, and contribute to employment generation. It also opens up scope for export of new technology cars from India.”
Technology sharing between different companies brings out better products for a consumer. If one company excels in making safety features, the other is good at pricing its products aggressively. This results in a win-win situation for both parties thereby offering safer products at affordable prices for both organisations. The tie-up between Toyota and Suzuki on a global level would witness Maruti Suzuki products coming with technological advancements even in their mass-market cars while Toyota can benefit from pricing strategies for its future products. The strategy would prove beneficial for a potential customer as such tie-ups also bring more features in a car without a high price tag.
The recent focus on electric and hybrid vehicles in India will also witness new electric and hybrid vehicles from Toyota and Suzuki. According to the FAME (Faster Adoption and Manufacturing of Hybrid and Electric vehicles) scheme, cars in future would have a higher inclination towards greener technologies. What potential customers can gain from this tie-up is that future Maruti Suzuki vehicles with better technologies and Toyota may package its small cars like the Etios Liva with more features while pricing it competitively.
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This is not the first time two competing manufacturers are joining hands for better technologies reaching the masses in a country. A recent report by Bloomberg also revealed that Volkswagen and Tata will join hands and pool in their resources for better products in India, however, there is no official statement from either of the companies but the talks are said to be advanced to its final stages.