Toyota and Suzuki have announced a new agreement to collaborate on the production of even more hybrid-electric vehicles and compact cars for each other. The new agreement comes after the two companies had an initial partnership back in 2017 for R&D and the new deal seeks to strengthen their ties in the ever-changing global automotive industry.

Based on the latest agreement, Toyota will be supplying hybrid technologies and powertrains to Suzuki for global use. Additionally, Toyota will be providing Suzuki with two new hybrid vehicles based on the RAV4 and Corolla Wagon for Suzuki to sell in Europe.

In return, Suzuki will be producing two new compact vehicles for Toyota in India. The two compact models will be based on the Ciaz and Ertiga, which will be rebadged by Toyota and sold in the Indian market. Toyota also will be receiving Suzuki engines to be used for new compact vehicles which will be sold in Europe. Toyota will also be rebadging the Baleno, Vitara Brezza, Ciaz, and Ertiga which will be sold in Africa. 

Aside from the two automakers supplying each other with vehicles and powertrains, Toyota and Suzuki will also be developing a new C-segment MPV. This badge-engineered model will be only be offered in India.

“Through our new agreement, we look forward to the wider use of hybrid technologies, not only in India and Europe, but around the world. At the same time, we believe that the expansion of our business partnership with Suzuki―from the mutual supply of vehicles and powertrains to the domains of development and production―will help give us the competitive edge we will need to survive this once-in-a-century period of profound transformation,” said Toyota president Akio Toyoda.

Despite the numerous partnerships and agreements, Toyota and Suzuki say they will continue to compete fairly and freely against each other.