Toyota To Manufacture Suzuki's Cars In India

After signing a memorandum of understanding in February, and revealing its plans to share models in India in March this year, Toyota and Suzuki are now working towards deepening their new relatioship with new projects in the fields of technological development, vehicle production and market development. As part of the latest initiative, Toyota has agreed to manufacture cars developed by Suzuki at its plant in Bidadi, Karnataka, which will then be sold through each of their dealer network. This should come as a relief for Suzuki, who have been facing manufactuing constraints due to high demand for models such as the Baleno and Vitara Brezza. This will also help Toyota utilise its manufacturing plant's 2,10,000 unit per annum production capacity.

Other highlights of the latest agreement include the decision to export these cars to nascent markets in Africa and the rest of the world. Apart from this, Toyota and Denso Corporation are in talks with Suzuki to lend support for its upcoming "compact and ultra-high-efficiency" powertrain, which is likely to be available in both petrol and hybrid guise. The new powertrain is vital to Suzuki as it will power cars not just sold in India, but across the globe. We expect Toyota to utilise these engines in their upcoming models too. 

Toyota Kirloskar Motor had earlier announced that it will produce models such as the Baleno and Vitara Brezza developed by Suzuki for sale in India through both carmakers’ dealership network. Both carmakers will also collaborate on developing EVs for the Indian market. These EVs are expected to hit showrooms by 2020. Both carmakers hope that these joint projects will contribute to the future success of their brands in India as well as the rest of the world.

Press Release

Toyota Motor Corporation (Toyota) and Suzuki Motor Corporation (Suzuki) have agreed today to start discussing new joint projects in the fields of technological development, vehicle production, and market development. After having concluded a memorandum of understanding toward business partnership on February 6, 2017, Toyota and Suzuki have been pursuing concrete forms of cooperation and have announced the mutual supply of vehicles for the Indian market and other joint efforts. Meanwhile, the two companies have also been broadening the scope of their partnership considerations to include joint efforts related to production and market development.

Discussion topics

Denso Corporation and Toyota to provide Suzuki with technological support for a compact, ultrahigh-efficiency powertrain to be developed by Suzuki.
Toyota Kirloskar Motor Private Ltd. (TKM) to produce models developed by Suzuki for sale in India through each of the Toyota and Suzuki brand network.
Supply of models developed by Suzuki, including those to be produced by TKM (as mentioned above), from India to African and other markets by Toyota and Suzuki, employing each of the Toyota and Suzuki sales networks to sell such vehicles, and advancing cooperation in the domains of logistics and services.
Details related to the above are to be discussed going forward.

Comments by Toyota President Akio Toyoda

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." 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. Breaking from a future that adheres to convention, Toyota has chosen a future in which the path is created by one's own hands. For this, the spirit of "Let's do it" is necessary. Through our business partnership with Suzuki, I would like to learn more about this spirit.

Comments by Suzuki Chairman Osamu Suzuki

At the time we announced the partnership, I said: "Under the leadership of President Akio Toyoda, Toyota was enthusiastic throughout our discussions regarding partnership sought by Suzuki, which was concerned about the development of advanced technologies. I want to express my heartfelt appreciation."

Immediately afterwards, Toyota arranged a series of intensive and meaningful discussions. Now, we will receive support for the development of a compact, ultrahigh-efficiency powertrain that is vital to Suzuki, and we will focus our utmost efforts on development. 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.