The Japanese automotive multinational Toyota Motor Corporation ( Toyota ,) currently led by Akio Toyoda, the fourth generation Toyoda, has been the largest automotive manufacturer worldwide, until recently ( especially after taking the hit of 2011 earthquake and Tsunami) when it dropped to 3rd spot, falling behind General Motors and Volkswagen. On the other hand, Toyota's domestic / international competitor Suzuki Motor Corporation ( Suzuki,) yet another Japanese automotive multinational led by Osamu Suzuki and Toshirio Suzuki, are better known for their dominance in the line of motorcycles.
When speaking of four-wheelers Suzuki holds a wide reputation of tie-ups with different automotive manufacturers. Finally, after several rumours and speculations, the two biggest Japanese automotive multinationals, Toyota and Suzuki have entered an agreement to collaborate and supply hybrids and other vehicles to the Indian market. The agreement mentioned that Toyota will receive Baleno and Vitara Brezza models Suzuki, and Suzuki will receive the Corolla Sedan from Toyota. Only the initial stages of the agreement have been confirmed, hence, further details on the commencement of these transactions, quantity of supply units, under the hood specifications and price details will be discussed upon, on a later stage of the agreement.
Like usual, Toyota Kirloskar Motor and Maruti Suzuki, the Indian counterparts of Toyota and Suzuki ( respectively ) will be responsible for the distribution of the vehicles in India. The primary objective of both the companies is to augment mutual sales and performance through healthy competition. Boosting each other with their best sellers and giving each other the opportunity to built on the brilliance of a rival company, is a spirit of mutual development that 21st century consumerism rarely sees. The agreement clearly states that it aims to, "challenge and compete with each other with the goal of mutual improvement, as the manufacturers aim to further enhance the products and services on offer." Healthy competition between companies always end up benefiting the buyers in terms of product quality and services offered. Hence, this agreement is expected to generate beneficial events on producer and buyer ends.
The announcements regarding the agreement have further stated of its compliance with the government’s “Make In India" endeavour, meaning, the companies will be sourcing built components locally, to the maximum ends possible. This step will further create a win-win situation with the country's labour force and automotive retailers. Additionally, the manufacturers will strive in collaboration to manufacture hybrid vehicles that will deliver a superior fuel performance, consequently help India diminish the environmental footprint.
Promoting concepts like, environment-friendly technology, safety technology and mutual supply of products and components, the Japanese automobile multinationals announced their primary stages of business partnership for India, in February 6, 2017. A Memorandum of Understanding ( MoU) was taken into consideration on November 7, 2017, that would see through a co-operative venture in introducing a battery powered electric vehicle in the Indian market. The tentative plans for such a vehicle hinted its release around the year of 2020.
Both the companies confirmed that these ventures will just be a start, from hereon, Toyota and Suzuki will continue to consider all possible options in the long run that can propel the country towards achieving a more consistently mobile society.