Toyota Motor Corporation (Toyota) and Suzuki Motor Corporation (Suzuki) today announced their agreement to begin considering concrete details about their collaboration in new fields. The companies have been working on the details of the collaboration since having concluded a memorandum of understanding toward business partnership in February, 2017.
In addition to bringing together Toyota’s strength in electrification technologies and Suzuki’s strength in technologies for compact vehicles, the partners intend to grow in new fields. These new areas include joint collaboration in production, and in the widespread popularisation of electrified vehicles.
Toyota intends to supply its Toyota Hybrid System (THS) to Suzuki globally, while widely spreading hybrid electric vehicle (HEV) technologies in India through local procurement of HEV systems, engines, and batteries. In addition, Toyota also aims to be the OEM supply of two new electrified vehicles built on its platforms (RAV4, Corolla Wagon) to Suzuki in Europe.
Meanwhile, Suzuki plans to be the OEM supply of two compact vehicles built on its platforms (Ciaz and Ertiga) to Toyota in India. Furthermore, Toyota is to adopt newly-developed Suzuki engines for compact vehicles, which will be supported by Denso and Toyota, and be manufactured at Toyota Motor Manufacturing in Poland. Finally, there will be an OEM supply of Suzuki’s India-produced vehicles (Baleno, Vitara Brezza, Ciaz, Ertiga) to Toyota, targeting African markets.
The two companies will carry out collaboration in the fields of technological development and production, leveraging both their strengths. Drawing upon Suzuki’s expertise in developing vehicles in India, there will be a joint development of a Toyota C-segment MPV and OEM supply to Suzuki. Production of the Suzuki-developed compact SUV Vitara Brezza will also begin at the Toyota Kirloskar Motor Pvt Ltd (TKM) from 2022. Going ahead, Toyota and Suzuki intend to consider further collaboration to realise a sustainable future mobility society while respecting all applicable laws, as long as they continue to compete against each other fairly and freely.
Akio Toyoda, President, Toyota, said that when it comes to vehicle electrification, which is expected to make further inroads, hybrid technologies are seen as playing a huge role in many markets. Widespread acceptance is necessary for electrified vehicles to be able to contribute to the environment, he added. Toyoda further noted that through the new agreement, Toyota looks forward to the wider use of hybrid technologies, not only in India and Europe, but around the world. “At the same time, we believe that the expansion of our business partnership with Suzuki—from the mutual supply of vehicles and powertrains to the domains of development and production—will help give us the competitive edge we will need to survive this once-in-a-century period of profound transformation. We intend to strengthen the competitiveness of both our companies by applying our strong points and learning from each other,” he added.
There has been progress in the partnership since announcement of the scope of cooperation in May last year, noted Osamu Suzuki, Chairman, Suzuki. He said it is a pleasure to be able to make this announcement regarding the status of the partnership on a global basis, including Europe and Africa. In addition, Suzuki appreciates the kind offer from Toyota to let the company make use of their hybrid technology, observed Suzuki.