Toyota Baleno and Vitara Brezza, and Suzuki Corolla – Mutual vehicle supply

Toyota and Suzuki have reached a basic agreement toward mutual vehicle supply through Suzuki Baleno and Vitara Brezza and Toyota Corolla to begin with.

As India cements its reputation as a growing automotive market, the agreement announced between Toyota Motor and Suzuki Motor will dictate mutual vehicle supply for hybrid and other cars between both companies in India. Both company’s will begin supplying cars in 2019 as Toyota advances to fortifying its position in emerging markets.

The agreement specifics at present outline Suzuki Baleno and Vitara Brezza supplies to Toyota. Toyota will supply the Corolla to Suzuki. Details in regard to each model including start of supply schedule, number of units to be supplied, vehicle specifications, and supply pricing will be considered at a later date. Discussed cars will be sold by respective Toyota and Suzuki subsidiaries in India through their sales networks.

Toyota and Suzuki strive to invigorate the Indian automotive market and improve their product lineups and service to customers in a challenging and competitive setup where both work towards the goal of mutual improvement.

Pursuant to the agreement first announced on February 6, 2017, Toyota and Suzuki will explore other collaborative projects that contribute to a sustainable mobile society through fair and free competition.

Following the initial MoU, both Toyota and Suzuki have explored projects for collaboration pertaining to environmental technology, safety technology, information technology, and mutual supply of products and components. In November 2017, a MoU was announced between Toyota and Suzuki to consider a ‘cooperative structure to introduce battery electric vehicles’ in India by 2020.

The latest announcement reflects the progress both companies have made together. The move boosts both companies’ product lineups and competitive edge in the Indian automotive market.

For the orderbooks to flow smoothly, both companies will renew efforts to procure components locally to the greatest degree possible. Toyota and Suzuki are committed to moving towards less fuel-consuming vehicles in aiding India reduce its environmental footprint.

Through its subsidiary Maruti Suzuki India, Suzuki would supply Toyota with 30,000 to 50,000 units of Baleno and Vitara Brezza annually, while, Toyota will provide Suzuki with about 10,000 Corolla (hybrid and gasoline) units. The mutual vehicle supply works on an original equipment manufacturing basis. In 2017, Toyota Motor India ended the year with a 3.5% market share. In comparison, Maruti Suzuki India enjoys upward of 40% market share.

The Toyota Etios designed for emerging markets hasn’t been the most popular. The addition of Suzuki cars in its portfolio will help boost sales. The MoU also means the company’s factory output will increase owing to its supply order to Suzuki.

In coping with India’s intention of a 30 percent strong electric fleet by 2030, Suzuki will use hybrids from Toyota. Together, the duo will release jointly developed electric vehicles in India in 2020.