In an effort to increase its presence in the fast-growing Indian market and beef up its global market share, automotive giant Toyota Motor Corporation has entered into a new cross-supply agreement with Suzuki Motor Corporation. Suzuki through its India-JV arm Maruti-Suzuki dominates the market with a 49.9% share, selling 1.6 million cars in 2017.
The recently inked agreement sees both companies supplying hybrid and standard gasoline vehicles to each other for the Indian market. Suzuki will be supplying the Baleno and Vitara Brezza models to Toyota. Meanwhile, Toyota will be supplying the Corolla sedan to Suzuki. These models will likely be rebadged versions which will be sold in their respective showrooms.
Further details such as the schedule of the start of supply, vehicle specifications, number of supplied units, and pricing will be announced at a later date according to the statement. The cars will be sold by both Toyota and Suzuki's Indian subsidiaries through their respective sales network. The mutual agreement will allow both companies to further enhance their respective products and services that will be offered to the market.
The latest agreement should further help Toyota's presence in India's vastly growing market.
Based on the said agreement, both companies will "continue to explore other collaborative projects that will contribute to the attainment of a sustainable mobile society in a manner that ensures fair and free competition."
This is not the first time that Suzuki and Toyota have collaborated in the Indian market; in February of last year, Toyota completed a tie-up with Suzuki to improve sales in emerging markets.
In November 2017, the two automakers signed a memorandum to begin development and selling jointly-developed electric vehicles in India by 2020.
Currently, India is the one the largest emerging markets for new car sales. Suzuki holds nearly half of market share with Toyota having a minimal 4.3%. The closest two makers are Honda with 14.5%, and Mahindra & Mahindra at 7.5%.