Suzuki-Toyota Tie up "A New Step forward"

Suzuki-Toyota Tie up "A New Step forward"

Suzuki and Toyota have introduced a settlement so one can see each carmaker percentage positive fashion in India. Maruti Suzuki will deliver the Baleno hatchback, Vitara Brezza compact SUV and now Ciaz sedan to Toyota. Maruti is also going to get a benefit as Toyota may produce the Corolla sedan for Maruti. 

Toyota has said that the partnership will focus on promoting collaboration in new fields, including the field of autonomous driving. Toyota is facing some issues in the market as they have less than 5% market share but the company is hoping its partnership with Suzuki can change its fortunes. 

Maruti Suzuki capture a massive more than 47% market share in India and has a great impact on the customers in India. Toyota wants to learn from Suzuki how to build low-cost vehicles for emerging markets such as India. The product sharing will help to bridge the gap in Toyota's line up. The Corolla based sedan, on the other hand, will help Maruti expand its line up and give the carmaker a premium offering, which could be retailed from the Nexa sales network. 

Toyota as a brand in India, is renowned for its quality, durability and reliability. Similarly, Maruti Suzuki's trust and familiarity owing to its vast network and value for money positioning are the best of both worlds for customers.

Final Conclusion

Experts believe that the long term success of any of this will lie in a clear distinction between the two badges and their respective offerings to the same target customers. Access to Toyota's technology will be key to future-proof Maruti's long term prospects, especially in the electric vehicle segment. If this doesn't work well in the market then customers will always go towards cheaper alternative and this strategy can create a messy situation in the market.