Toyota, Suzuki step up tie-up synergies for India and the world
As part of the new arrangement, Toyota will offer Suzuki the technology to develop a new compact and highly efficient car engine for India and other global markets
New Delhi: The world’s largest automaker, Toyota Motor Corp., along with Denso Corp., will transfer technology to Suzuki Motor Corp. for the development of an ultra high-efficiency powertrain for India and other global markets.
The specifications of the proposed powertrain were, however, not revealed. “We will receive support for the development of a compact, ultra high-efficiency powertrain that is vital to Suzuki, and we will focus our utmost efforts on its development,” said Osamu Suzuki, chairman, Suzuki Motor Corp.
The two Japanese automobile manufacturers, which were in talks to develop electric and hybrid vehicles, said on Friday that they will also be initiating discussions on a partnership for technological development, vehicle production and market development.
They have, in fact, decided to jointly explore the African market, besides expanding their mutual sales network catering to the Indian market.
Maruti Suzuki chairman R.C. Bhargava said: “As of now, they have only made an announcement on the development of a powertrain by Suzuki, with technology from Toyota and Denso, besides a joint development of the African market. Details are yet to be worked out.”
According to a press statement by Toyota’s Indian subsidiary, the enhanced cooperation will primarily cover three major areas.
While Denso and Toyota will provide Suzuki with technological support for the compact powertrain, Toyota Kirloskar Motor Pvt. Ltd will produce models developed by Suzuki for sale in India.
The two companies were also looking to cooperate in logistics and services, wherein models developed by Suzuki in India and those produced by Toyota Kirloskar, will be supplied to the African markets using both Toyota’s and Suzuki’s sales networks.
“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. It represents the spirit of ‘let’s do it’...Suzuki is a company that puts into practice being ‘the best in town’,” said Akio Toyoda, president, Toyota.
Suzuki will invest a record $15 billion in research and development of new products, especially for the Indian market. The company is also planning massive expansion of its capacities in India to protect its turf.
“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,” said Osamu Suzuki.
In March, Toyota and Suzuki had agreed to sell cars from their respective stables on both platforms, to deepen their ties.
According to the agreement, Suzuki, which outsells Toyota in India, will supply its best-selling models, including compact car Baleno and small sports utility vehicle Vitara Brezza, to Toyota, while small car specialist Suzuki will source Toyota’s popular sedan Corolla to sell it through the dealership network of its local unit, Maruti Suzuki India Ltd
- Ghosn demise ripples from Tokyo to Paris as allegations grow
- CCI to probe alleged antitrust behaviour by Maersk, DP World at Mumbai port: Report
- Raj Nayak quits Viacom18
- The writing is very clear on the wall, Supreme Court warns Amrapali Group
- Free shipping becomes a blessing and curse at Amazon and Target
Editor's Picks »
- Banks get ₹3.7 trillion lending boost with RBI-FinMin ceasefire
- Telangana to witness fight between ‘frenemies’ Congress and TJS
- Delhi Police arrests Hizbul Mujahideen militant for killing J&K cop Imtiaz Ahmed
- If voted to power, BJP will kill Mizo identity, says Rahul Gandhi
- Won’t contest 2019 LS polls, says Sushma Swaraj