Earlier this year, Toyota Motor Corporation announced that they will be cross-supplying Suzuki Motor Corporation vehicles in the fast growing Indian market. To further broaden the scope of their partnership, the two manufacturers have recently began discussions on new joint projects. These projects focus on the fields of technological development, vehicle production, and market development.
Some of the topics discussed included Denso Corporation and Toyota providing Suzuki with technological support for a 'compact, ultra-high efficiency powertrain' which will be developed by Suzuki. Meanwhile, Toyota Kirloskar Motor Private Ltd. (TKM) will be producing the upcoming models developed by Suzuki for sale in India.
At the moment, there are no details regarding the upcoming models to be produced by TKM. With the mention of a compact powertrain, expect it to be a smaller vehicle which will be competing in the Indian market. With that, there will be a supply of models developed by Suzuki to be distributed to other regions as well. Both Toyota and Suzuki will employ each of their respective sales networks to sell the models, along with the cooperation of logisitcs and serivces.
Osamu Suzuki, Chairman of Suzuki, mentioned that the support for development of the upcoming powertrain is vital to the brand. He also hopes that the new joint projects will contribute to the future success of both companies not just in India, but in the global market.
For reference, India is currently one of the largest emerging markets for car vehicle sales with Suzuki holding the largerst share of the market. The tie-up with Toyota will help Suzuki improve sales, and the former having a better share of the market.