Toyota Motor and Suzuki Motor announced and agreement to “begin considering concrete collaboration in new fields”.

They earlier concluded a memorandum of understanding towards a business partnership in February, 2017.

“Toyota and Suzuki, in addition to bringing together Toyota’s strength in electrification technologies and Suzuki’s strength in technologies for compact vehicles, intend to grow in new fields, such as joint collaboration in production and in the widespread popularisation of electrified vehicles,” the pair said in a statement.

Toyota is seen as strong in the provision of electrified technology and electrified vehicles and will supply its hybrid system to Suzuki, procure HEV systems, engines, and batteries in India and supply on an OEM basis, Suzuki Europe with vehicles built on Toyota RAV4 and Corolla wagon platforms.

The Corolla based vehicle will be made at the Toyota plant in Burnaston, England, improving utilisation there. The RAV4 platform model will be built in Japan.

With Suzuki expertise being compact vehicles and powertrains, it will in turn OEM supply two compact vehicles built on the Ciaz and Ertiga platforms to Toyota in India.

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By GlobalData

Toyota will adopt newly developed Suzuki engines for compact vehicles and make them at its drivetrain plant Toyota Motor Manufacturing Poland.

Suzuki will also OEM supply Indian-produced vehicles (Baleno, Vitara Brezza, Ciaz, Ertiga) to Toyota, targeting the African market.

Both companies will collaborate on technology development and production and, drawing on Suzuki’s expertise in developing vehicles in India, jointly develop a Toyota C-segment MPV for OEM supply to Suzuki.

The Suzuki-developed Vitara Brezza compact SUV will be built by Toyota  Kirloskar Motor (TKM) in India from 2022.

Toyota president Akio Toyoda said: “When it comes to vehicle electrification, which is expected to make further inroads, hybrid technologies are seen as playing a huge role in many markets.

“Through our new agreement, we look forward to the wider use of hybrid technologies, not only in India and Europe, but around the world. At the same time, we believe that the expansion of our business partnership with Suzuki – from the mutual supply of vehicles and powertrains to the domains of development and production – will help give us the competitive edge we will need to survive this once-in-a-century period of profound transformation. We intend to strengthen the competitiveness of both our companies by applying our strong points and learning from each other.”

Suzuki chairman Osamu Suzuki said: “We appreciate the kind offer from Toyota to let us make use of their hybrid technology.”