Toyota, Suzuki expand scope of collaboration beyond India to Africa, Europe

Japan's Toyota Motor Corporation and Suzuki Motor Corporation Wednesday announced strengthening of their collaboration, including manufacturing of Suzuki-developed compact SUV Vitara Brezza at Toyota's plant in India from 2022. The two partners have agreed to extend their collaboration to Europe and Africa over and above their partnership in India. As part of "considering a concrete collaboration in new fields", Suzuki will supply Ciaz sedan and Ertiga multi-purpose vehicle to Toyota in India in addition to the already agreed supplies of premium hatchback Baleno and compact SUV Vitara Brezza. 

Moreover, Suzuki will supply its India-produced vehicles -- Baleno, Vitara Brezza, Ciaz, Ertiga -- to Toyota for the African market as well, the companies said in a joint statement. Toyota on the other hand, will provide Suzuki its hybrid electric vehicle (HEV) technologies in India through local procurement of HEV systems, engines, and batteries, while also supplying THS (Toyota Hybrid System) to Suzuki in the global markets.

Commenting on India specific collaboration, the two firms said the partnership will focus on the fields of technological development and production leveraging on each other's strength.

As part of the programme, Suzuki-developed compact SUV Vitara Brezza will be produced at Toyota Kirloskar Motor (TKM) plant from 2022, it said. Moreover, drawing upon Suzuki's expertise in developing vehicles in India, the partners plan joint development of a Toyota C-segment MPV and OEM supply (of the same) to Suzuki. Commenting on the development, Toyota President Akio Toyoda said:"Through our new agreement, we look forward to the wider use of hybrid technologies, not only in India and Europe, but around the world."

At the same time, he said,"we believe that the expansion of our business partnership with Suzuki ? from the mutual supply of vehicles and powertrains to the domains of development and production ? will help give us the competitive edge we will need to survive this once-in-a-century period of profound transformation."

Suzuki Motor Corporation Chairman Osamu Suzuki said since the announcement of scope of cooperation in May last year, the partners had envisaged to strive for success globally. "I have seen progress in the partnership since then, and it is my pleasure to be able to make this announcement today regarding the status of partnership on a global basis, including Europe and Africa," Suzuki said.

In addition, he said,"we appreciate the kind offer from Toyota to let us make use of their hybrid technology. We will continue our utmost efforts."

As part of the new plans, in Europe, Toyota will adopt newly developed Suzuki engines for compact vehicles. Such engines will be supported by Denso and Toyota, and will be manufactured at Toyota Motor Manufacturing Poland. On the other hand, Toyota will supply two new electrified vehicles built on its platforms (RAV4, Corolla Wagon) to Suzuki in Europe.

"Moving forward, insofar as Toyota and Suzuki continue to fairly and freely compete against each other, both companies intend to consider further collaboration to realise a sustainable future mobility society while respecting all applicable laws," the statement said.

In March last year, the two Japanese companies had concluded a basic agreement for supplying hybrid and other vehicles to each other in the Indian market. 

As per the agreement, Suzuki supplies premium hatchback Baleno and compact SUV Vitara Brezza to Toyota, while Toyota supplies sedan Corolla to Suzuki. In February 2017, Toyota and Suzuki concluded an agreement 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.