Toyota-Suzuki partnership could yield small Toyota cars for India
Suzuki could use Toyota's hybrid technology to expand globally while the latter could use the former's expertise in small cars to crack the Indian market.
In early February, Toyota and Suzuki announced that they have agreed to initiate talks regarding a partnership in shared procurement, green vehicles, IT and shared technologies. Considering that Maruti Suzuki is, by far, the largest contributor to Suzuki’s global revenue, the partnership will have a significant impact on the way both brands operate in India.
For starters, green vehicles tech (read hybrid) seems to be the primary point of focus, especially for Suzuki. While Toyota’s global hybrid vehicle sales recently surpassed 10 million units, Maruti Suzuki managed to sell over 1 lakh units of its SHVS mild hybrid models (Ciaz and Ertiga) in India in a reasonably short period. There definitely is a huge room for knowledge transfer here.
While Suzuki can gain technical know-how from Toyota when it comes to hybrid technology and alternative propulsion systems (vital for its global expansion), the smaller Japanese automaker can introduce the giant to its frugal cost structure in addition to allowing access to its acclaimed low-cost compact cars.
So, what can we expect from this partnership from India’s point of view? Economic Times reports that Toyota could be looking at introducing products in the small car space in India with the help of Suzuki.
This would not only help Toyota establish a presence in the volume-rich segment but would also help in meeting the strict CAFE (Corporate Average Fuel Economy) norms in the future. CAFE calculates average fuel efficiency on the basis of total number of cars produced in a year.