Nagoya: After cross-badging of the Baleno hatchback and Corolla sedan, Suzuki will produce two compact models for Toyota in India based on its Ciaz and Ertiga models, the Japanese carmakers said on Wednesday, in extension of an alliance announced in 2017. Suzuki will also supply Toyota with petrol engines for compact cars to be sold in Europe.

Toyota Motor Corp. and Suzuki Motor Corp. also plan to produce electric vehicles and compact cars for each other to better compete with fast-changing technologies in the global auto industry.

The agreement builds on a Toyota-Suzuki alliance announced in 2017 under which Toyota is helping Suzuki to develop and market electric cars in India, while Suzuki helps Toyota increase its presence in the fast-growing Indian market.

According to the latest agreement, Suzuki will source hybrid systems for cars it sells worldwide from Toyota, which pioneered hybrid vehicles with the Prius more than 20 years ago, the companies said in a joint statement.

Suzuki's hybrid vehicles for the Indian market will be made using engines and batteries locally produced by Toyota. In addition, Toyota will produce electric vehicles based on its RAV4 SUV crossover and Corolla wagon for Suzuki in the European market.

Suzuki will also produce its Baleno, Vitara Brezza, Ciaz, and Ertiga models for Toyota to sell in Africa.

Close