Japanese auto majors Toyota Motor Corp. (TMC) and Suzuki Motor Corp. (SMC) announced a partnership to devise collective strategies for strengthening collaboration in fields of environment, safety, and information technology, on Wednesday.
Both companies have agreed to start exploring ideas that are directed towards a business partnership, Toyota and Suzuki said in a joint statement. The partnership is expected to help both companies find solutions to their respective shortcomings, especially in emerging markets like India.
For SMC’s Indian arm – Maruti Suzuki – the bread-and-butter segment has been the small car space. And despite its consistent efforts in that direction, the company is increasingly feeling a sense of uncertainty in the face of advanced and future technology, according to the statement.
“On the other hand, although Toyota has been working on R&D in environment, safety, and IT fields, Toyota is conscious of the fact that it may be behind competitors in North America and Europe when it comes to the establishment of standardisations and partnership with other companies,” the statement added.
The Japanese duo has also left the door open for any future collaborations with other companies with the aim for standardisation in the industry.
It is also being said that this association will not impact the way the two companies work in India. “This discussion is based on the prerequisite that both companies continue to compete with each other in a fair and independent manner,” the statement added.
In fact, the competition between the Indian arms of the two companies is set to go north since Toyota is planning to launch a range of new smaller cars under the Daihatsu brand, which it acquired recently.
