Suzuki to use the unutilised capacity of Toyota in India to make cars, while Toyota will use Suzuki’s large distribution network for its vehicles
New Delhi
Two Japanese automotive giants Toyota Motor Corporation and Suzuki Motor Corporation are looking to use India as a hub for exporting cars to Africa. Expanding their pact signed in February 2017, Toyota Motor and Suzuki Motor recently agreed to start discussion on new joint projects in the fields of technological development, vehicle production, and market development.
Since February 2017, two companies 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.
As per the new plan, Toyota Kirloskar Motor Private Ltd (TKM) will produce models developed by Suzuki for sale in India through each of the Toyota and Suzuki brand network. This will help Suzuki to use the unutilised capacity of TKM in India and Toyota can use Suzuki’s large distribution network for its vehicles. Besides, two sides have agreed to export models developed by Suzuki, including those to be produced by TKM, from India to African and other markets.
Globally, Denso Corporation and Toyota will provide Suzuki with technological support for a compact, ultrahigh-efficiency powertrain to be developed by Suzuki.
“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,” commented Akio Toyoda, President, Toyota.
Osamu Suzuki, Chairman, Suzuki, added, “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.”