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Japanese manufacturers Toyota and Suzuki mull partnership

The likely collaboration could include infrastructure development, industrial standards and technological R&D.

Japanese auto makers, Toyota and Suzuki have stated on Wednesday that they were both in discussions over a business partnership. This joint venture follows one year after Suzuki Motor Corp parted ways with Volkswagen AG after a 6 year old partnership.

Collaboration with Toyota would allow Suzuki to gain in terms of R&D with Toyota having set apart 1.07 trillion yen ($10.3 billion), 7 times in excess of Suzuki’s budgeted amount.

Daihatsu Sigra 2016 GIIAS Indonesia (18)

Even as Suzuki Motors banks heavily on Maruti Suzuki India Limited for its low cost models, Toyota recently announced a buyout of Daihatsu Motor Co for the development of compact models for emerging markets. Daihatsu is Suzuki’s prime competitor in this segment, especially when Toyota plans to launch Daihatsu in India, a country which accounts for more than 50% of Suzuki’s global car sales.

While Suzuki states that the company is refining its technologies given the fast paced advancement in R&D and feeling a sense of uncertainty, Toyota has also stated that in North America and Europe, it has fallen behind its competitors where partnering with other companies is concerned. Both Suzuki and Toyota could go ahead with this partnership to solve these challenges while they have also stated that they would continue to compete with each other in a fair manner.

Maruti Suzuki Baleno 2016 Indonesia GIIAS (15)

Speaking about impact of the partnership on the Indian auto industry, the management officials of respective companies told ET Auto that there was not going to be any effect in India of the possible partnership talks.

News Release

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Pearl Daniels

Pearl Daniels

Former freelance writer, Pearl Daniels is in the auto industry since 2011, having established herself as a widely read staff writer since 2013. Her keen eye for industry news, daily need to break down latest events, and quest to not miss a single launch detail, gives you the most refreshing morning news on weekdays.

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