TKM to produce models developed by Suzuki for sale in India through each of the Toyota and Suzuki brand network.
New Delhi: Japanese auto majors Toyota and Suzuki today announced expanding scope of their collaboration, including plans for Toyota Kirloskar Motor to manufacture models developed by Suzuki for sale in India through their respective brand networks.
Moreover, the two firms are looking at cooperation in exports of models developed by Suzuki, including those produced by Toyota Kirloskar Motor (TKM) -- the Indian arm of Toyota, from India to Africa and other markets through their respective global sales networks, the two companies said in a joint statement.
Besides, Toyota and Suzuki which had in March concluded a basic agreement for supplying hybrid and other vehicles to each other for the Indian market, will also discuss Toyota and Denso Corporation providing technological support for a compact, ultrahigh-efficiency powertrain to be developed by Suzuki.
"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," the statement said.
The two companies have also been broadening the scope of their partnership considerations to include joint efforts related to production and market development, it added.
The discussion topics include "TKM to produce models developed by Suzuki for sale in India through each of the Toyota and Suzuki brand network", it said.
The discussions also cover "supply of models developed by Suzuki, including those to be produced by TKM 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".
Commenting on the development, Toyota President Akio Toyoda said, "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."
He further said Suzuki was the first among Japanese companies to enter India responsible for pulling forward India's automotive society representing the spirit of 'Let's do it'.
"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," Toyoda added.
Suzuki Chairman Osamu Suzuki said he hoped the new joint projects would contribute to the future success of both companies, not only in India, but also in the global markets.
"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," Suzuki said.
In March this year, in continuation of their partnership discussions that kicked off in 2017, Suzuki agreed to supply premium hatchback Baleno and compact SUV Vitara Brezza to Toyota, while Toyota will supply sedan Corolla to Suzuki.
These models were to be sold by the respective Indian subsidiaries of Toyota (Toyota Kirloskar Motor) and Suzuki (Maruti Suzuki India) through their sales networks. In February 2017, Toyota and Suzuki had concluded a memorandum towards business partnership and since then, they have been exploring concrete projects for collaboration in areas including environmental technology, safety technology, information technology, and the mutual supply of products and components.
Subsequently, in November 2017 the companies announced an MoU to consider a cooperative structure for introducing battery electric vehicles in India around 2020.