Toyota and Suzuki give details on their collaborative business plan

KUALA LUMPUR: Back in 2017, Toyota and Suzuki signed an MoU, and now we have more details on their collaborative business plan. Both the companies have also revealed the areas of cooperation, which include important fields like safety, environmental technologies, and mutual supply of components and products.

Thanks to the new collaboration, Suzuki, which has a decent share in the growing Indian market will now be able to use Toyota’s Hybrid System for the global market. Additionally, Suzuki will also be benefiting from Toyota’s proficiency in hybrid technologies because the latter will supply the former with required systems in India. Moreover, Suzuki will also sell (in Europe) two new electrified vehicles based on Corolla Wagon and RAV4, which will be supplied by Toyota.

"We believe that the expansion of our business partnership with Suzuki ... will help give us the competitive edge we will need to survive this once-in-a-century period of profound transformation," said Toyota president Akio Toyoda.

On the other hand, the benefit that will come to Toyota’s side is utilising Suzuki’s knowledge in compact cars, which will be reflected by the supply of Ertiga and Ciaz platform to Toyota, to sell in India. Moreover, Toyota will use engines of Suzuki’s compact cars that are sold in the European market. Toyota will also get Suzuki’s vehicles that are assembled in India like the Ciaz, Baleno, and Ertiga. Toyota is said to sell these vehicles in Africa.

One of the main highlights of this collaboration is that both the companies will jointly build a Toyota C-segment MPV that will be sold in India by Suzuki. Suzuki will also assemble Vitara Brezza at the Toyota Kirloskar Motor production facility in India from 2022.

Also, note that Suzuki will cease the production of Proton Ertiga once the obligated volumes are met, owing to the end of its partnership with the Malaysian automaker.