Saar: The Japanese duo has reached an agreement where Suzuki will supply 30,000 to 50,000 units of the Baleno and Vitara Brezza from 2019. In return, it will receive around 10,000 units of hybrid and petrol versions of the Corolla from Toyota

Get ready everyone as two of the biggest carmakers in the world have reached an agreement to no just capture the Indian market, but also rule like kings. Toyota has tied-up with its Japanese counterpart, Suzuki, to share their hit products with each other. Allow us to clarify. From 2019, Suzuki will supply 30,000 to 50,000 units of its Baleno hatchback and Vitara Brezza compact SUV to Toyota annually. In return, Suzuki will receive around 10,000 units of the Corolla sedan in its hybrid and petrol versions from Toyota.

From this alliance, both auto giants stand to gain from each other. Toyota will have tried-and-tested products at its disposal and can tweak them cosmetically, rebrand and sell with their own name. This will help Toyota grab a more substantial market share in the sub-Rs 10 lakh bucket, which is currently hovering around 5 per cent. On the other hand, Suzuki will gain access to Toyota’s renowned hybrid technology and that will help India’s largest carmaker to quicken its preparations for an electrified future.

On a global scale, this collaboration will help the Japanese make a mark in emerging markets like Brazil. India stood as the fourth largest automobile market in the world in terms of per annum unit sales in the year 2017 whereas Brazil came in eighth. Automakers sold just over 40 lakh units on our shores and that equates to a year-on-year growth of 9.5 per cent. The only countries ahead of India were China, USA and Japan – in descending order.

Last year, Toyota and Suzuki announced a tie-up to co-produce electrified vehicles in India. From 2020, Toyota will procure electric vehicles from Suzuki to sell them in India and emerging markets around the world. Maruti Suzuki is currently setting up a battery plant in Gujarat for electric vehicles.

No matter which way you look at these collaborations between the two Japanese auto giants, India is clearly an integral part of their future plans. We know how well-established Maruti Suzuki is in India and Toyota has its own set of loyalists. With Toyota and Suzuki coming together to carve the future of automotive industry here, it is only a matter of a few years before both manufacturers play a collaborative role to help India overtake their own home country and become the third largest automobile market in the world.