Toyota and Suzuki drive new electric vehicle partnership
Carmakers Toyota and Suzuki yesterday said they plan to produce electric vehicles (EVs) and compact cars for each other to better compete with fast-changing technologies in the global car industry.
The agreement follows an initial R&D tie-up announced by Japan's number one and number four carmakers in 2017, and will see more vehicles produced by Suzuki for Toyota, one of the world's biggest carmakers.
Although Suzuki is far smaller, it is a dominant force in the fast-growing Indian market.
The two companies have been pooling their strengths.
Toyota is a leader in hybrid technology and is investing heavily in automated driving, while Suzuki specialises in affordable compact cars - as many carmakers struggle to keep pace with ballooning investment in EVs and self-driving cars.
Under the latest agreement, Suzuki will source petrol hybrid systems for cars it sells worldwide from Toyota, which pioneered hybrid vehicles with the Prius more than 20 years ago, the companies said in a joint statement.
In return, Suzuki will produce two compact models for Toyota in India based on its Ciaz and Ertiga models.
Further co-operation with Suzuki will help Toyota expand its presence in India, the world's fifth-largest passenger car market where it has struggled to grow sales due to lean demand for its lower-cost models.