Toyota Motor Corp and Suzuki Motor Corp on Monday said they had agreed to hold talks to enter a partnership to manufacture environment-friendly vehicles and develop technology to improve car safety, reported Reuters. The collaboration will give Suzuki access to Toyota’s technology, and in return, Toyota will benefit from Suzuki’s market position in India.
“Toyota and Suzuki have agreed to work toward the early realisation of a business partnership,” a joint press release said. The two Japanese automakers signed a memorandum of agreement on Monday, reported AP.
Toyota President Akio Toyoda said Suzuki “overflows with the spirit of challenge”, while Suzuki Chairman Osamu Suzuki said, “I want to give this effort our fullest and aim at producing results...”
Suzuki has been seeking a larger partner for a while after failing to keep up with the research and development in the industry. Toyota, on the other hand, invests in fields such as manufacturing lower-emission cars and automated driving. However, Toyota has not been able to gain significant ground in India, while Suzuki is the Indian market leader because of its stake in Maruti Suzuki India Ltd.
Toyota is currently the world’s second-largest car manufacturer, whereas Suzuki is Japan’s fourth-largest automaker.
In 2015, Suzuki and Volkswagen had entered a tie-up, but the deal had ended after Suzuki agreed to sign an agreement on producing diesel engines with Fiat. The German automaker had accused Suzuki of violating their pact.