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Reports in Japan this week suggested that Toyota and Suzuki are in talks to collaborate in the manufacture of compact and small cars for emerging markets, including India and South-east Asia.

The two companies denied the reports carried in the Nikkei business daily and by Kyodo News. The Nikkei also suggested a capital tie-up is also being discussed.

The reports suggest Suzuki would benefit from Toyota's more advanced technologies in areas such as new energy vehicles and automated driving.

Suzuki has had unsuccessful tie-ups in the past with global manufacturers such as General Motors and Volkswagen.

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By GlobalData