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Toyota And Suzuki To Produce Cars For Each Other In India By 2019

NEWS WORLD INDIA | 0
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| March 30 , 2018 , 18:56 IST

Toyota and Suzuki Motor Corp on Thursday agreed to produce cars for each other in India. Toyota aims to increase its market share in the world’s fifth-largest passenger car market.

This agreement between the two Japanese car manufacturers was announced a year ago. This will see Toyota, one of the world’s biggest automakers, secure production from its much smaller rival, which dominates India with its line-up of affordable compact cars.

Meanwhile, Suzuki will supply Baleno and Vitara Brezza to Toyota, the latter will produce Carolla for the former.

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Analysts say that the arrangement would help Toyota expand its presence in India, where it has struggled to grow sales due to major demand for its lower-cost models.

Manufacturing of these cars will begin by mid-2019. Cars under this deal will be renamed and rebranded with the company’s badge they will go to.

The deepening partnership between the two automakers will enable Suzuki to tap into Toyota’s R&D firepower to develop lower-emission vehicles and self-driving cars - areas which Suzuki has admitted it is struggling to keep up with.

Last year, Toyota sold roughly 1,40,000 cars in India, leaving its two plants in the country to operate at about half their capacity of manufacturing more than 300,000 vehicles a year.