Toyota and Suzuki are likely to extend their tie-up with focus on electric and ICE shared products. The extension will include the co-development of BEV and fuel-cell vehicles instead of just hybrids as announced initially. The association is expected to strengthen the competitive position of both the companies accompanied by added focus on India, says GlobalData, a leading data and analytics company.

Bakar Sadik Agwan, Senior Automotive Analyst at GlobalData, comments: “The development could possibly be focused on EV manufacturing in India given the INR260bn (US$3.5bn) worth production linked incentive (PLI) announced by the government. An entry-level BEV based on Suzuki’s Wagon R has also been spied multiple times that is expected to be launched in India soon and could be part of the extended partnership between the two companies.

“As the government is striving to achieve the target of 30% electrification in new sales by 2030, there are significant opportunities in the EV segment in India, both from a production and sales perspective.”

Toyota and Suzuki have also been working on a new premium SUV in India, which would compete with the likes of Hyundai Creta and Kia Seltos and will be first Suzuki product to be rolled out from Toyota’s facility in India. The premium SUV – set to be launched next year – falls under the timeline that Toyota initially announced i.e., to manufacture its own version of Suzuki’s Vitara Brezza from 2022 onwards.

Mr. Agwan continues: “The global alliance has seen a slew of Suzuki rebadged vehicles by Toyota in India and African markets and likewise hybrid from Toyota for Suzuki in Europe. The rebadged compact vehicles gave wider market access to Toyota than its earlier ‘SUV-only’ presence in India and contributed nearly 40% of the total Toyota sales volumes this year.”

Suzuki now has presence in the world’s fastest-growing EV market – Europe. Hence, this alliance is a win-win situation for both the companies.

Mr. Agwan concludes: “With the automotive market transitioning so fast, a collaborative business approach could help both automakers to achieve their individual goals, share costs, grow margins as well as retain their positions within the future automotive market, which will be more fiercely competitive.”