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Suzuki and Toyota enter into cross-badging agreement

March 29, 2018, 02:15 PM IST by Nikhil Puthran
Suzuki and Toyota enter into cross-badging agreement

To spice things up in the Indian car market, Suzuki and Toyota have entered into an agreement for a mutual supply of hybrid and other vehicles. As per the agreement, Suzuki will supply the Baleno and Vitara Brezza vehicle models to Toyota, while Toyota will supply the Corolla vehicle model to Suzuki. Along with technology sharing, we also expect to see fresh cosmetic upgrades in the form of a new fascia and rebadging on the vehicles.

Although electrified mobility has been a primary focus for the automobile industry, hybridisation is also something which a lot of car manufacturers are moving towards. Suzuki and Toyota will initially be working on three car models and down the line we can expect more models to be a part of this cross-badging activity. For Toyota, the new collaboration will help them fill the gap in the large hatchback and compact SUV segment with the Baleno and the Vitara Brezza respectively. Moreover, it will also help Toyota further strengthen its foothold in the Indian market. Suzuki has been a strong player in the small car segment, however it has been struggling in the D-segment space for a while. The collaboration will help Suzuki mark its presence in the segment with the Corolla Altis.

On 6 February 2017, Toyota and Suzuki concluded a memorandum towards business partnership. Since then, the two companies have been exploring concrete projects for collaboration in areas including environmental technology, safety technology, information technology, and the mutual supply of products and components. The November 2017 announcement of the memorandum of understanding between Toyota and Suzuki to consider a cooperative structure for introducing battery electric vehicles in the Indian market in around 2020 was one outcome of the joint exploration into the partnership. Today’s announcement is yet another outcome and underscores the progress that Toyota and Suzuki have made together, and it aims to bolster both companies’ product lineups and encourage competition in the Indian automotive market.

Rendering Courtesy - Kaustubh Gandhi

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