The two Japanese manufacturing giants, Suzuki and Toyota, have decided to come together as allies to share technologies, co-develop EV platforms, explore autonomous vehicle development and more.
As part of this deal, both companies have announced an intent to purchase a stake in each other. Toyota plans to procure a 4.94 per cent stake in Suzuki for ¥ 96 billion (Rs 6,532 crore), and on the flip side, Suzuki will invest roughly ¥ 48 billion (Rs 3,266 crore). in Toyota. The deal is essentially finalized, pending approval from foreign competition authorities.
A press release shared by the two brands delved a little deeper into the motivations behind this alliance, saying, “The automobile sector is currently experiencing a turning point unprecedented in both scope and scale, not only because of enhanced environmental regulations, but also from new entries from distinct industries and diversified mobility businesses. The two companies intend to achieve sustainable growth, by overcoming new challenges surrounding the automobile sector by building and deepening cooperative relationships in new fields while continuing to be competitors, in addition to strengthening the technologies and products in which each company specializes and their existing business foundations.”
Specifically, to take up challenges together in this transitional era, the two companies plan to establish and promote a long-term partnership between the two companies for promoting collaboration in new fields, including the field of autonomous driving.”
The execution of the capital alliance agreement is a confirmation and expression of the outcome of sincere and careful discussions between the two companies, and it will serve for building and promoting their future partnership in new fields.”
Also Read – Suzuki and Toyota Alliance: Toyota to Launch re-badged Ertiga and Ciaz | Toyota Glanza Launched in India
We have already seen the first fruits of this Suzuki and Toyota alliance in the form of Toyota re-badging the Maruti Suzuki Baleno and calling it the Glanza here in India, and we know that there are more re-badging projects in the pipeline as well. Whether or not this alliance culminates into one that is mutually fruitful or not, though, only time will tell.
