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Toyota and Suzuki announce surprise alliance

February 06, 2017, 11:06 AM IST by Abhishek Nigam
Toyota and Suzuki announce surprise alliance

In a surprise move Toyota and Suzuki announced their partnership.  Suzuki and Toyota will aim to strengthen collaboration in environment, safety and information technology which is what this collaboration is said to be about. But no further information was given regarding details of this collaboration. Toyota CEO Akio Toyoda has further elaborated that a decision has not been made as to exactly what relationship they will have with Suzuki.

The two companies said that Suzuki was increasingly feeling a sense of uncertainty in the face of rapidly developing new technologies, while Toyota admitted it may be behind competitors in North America and Europe when it comes to partnerships with other companies.

Of course, exactly how this proposed Toyota-Suzuki collaboration will impact on Suzuki’s most important other affiliation, the well-established Maruti-Suzuki India Ltd joint venture, which accounts for 47 per cent of the Indian market, is yet to be seen. Toyota is well aware of Suzuki's 33-year relationship with Maruti and the joint venture's annual 1.4 million unit production capacity, and may seek access to Maruti-Suzuki's extensive dealer and distribution network in one of the fastest growing economies on the planet. Toyota may also look to Suzuki's local knowhow to co-develop compact cars and hatches more suited and priced for the Indian market.

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