Some time ago, Suzuki and Toyota had joined hands to exchange their strengths in the Indian car space. As a part of this strategic alliance, Toyota and Suzuki would exchange, rebadge and sell each other’s cars. This alliance would benefit Toyota, as they are currently catering to the premium segment mostly in our country. Whereas, Suzuki will be benefitting by sharing Toyota technology and will also gain entry into the premium market. These two automotive giants are also working to launch a series of hybrid and electric cars in the Indian market by the year 2020. The companies, however, are yet to firm up their discussions regarding this partnership.
A top-level executive of Toyota India told The Mint in an interview, “The tail end of fiscal 2019 should see something (concrete) happening, A more definite timeline of events will also emerge towards the end of the year.” As a part of this arrangement, Maruti (Suzuki’s Indian subsidiary) will provide Toyota with its popular models – the Vitara Brezza SUV and the Baleno hatchback. This would help Toyota to maximise the use of their second plant in Bengaluru, which currently, is running at about 30% of its full capacity. Moreover, Toyota would also benefit from the vast number of dealerships and workshops Maruti Suzuki has spread across the country.
Maruti will emerge out as the real winner in this case. Not only will they benefit from the technical prowess of Toyota, but these two companies coming together would also boost their sales figures further and bring down the distribution and development costs of a car, giving their products a very competitive price point. Moreover, Maruti shall also receive the Corolla Altis from the Toyota Stable. There are rumours of Maruti launching this car with a proper hybrid system as well in the near future. Hybrid system or not, Maruti will finally be able to crack a successful entry in the premium segment. We’ll tell you more about this alliance, just as we get any wind about a new development. Stay tuned!