The current agreement, which builds on the 2017 partnership, is aimed at boosting and supporting each other, so that they can better compete in the global EV market.
On Wednesday, Toyota Motor Corp and Suzuki Motor Corp stated, they plan on producing electric vehicles (EVs) and compact cars for each other so as to better compete in a fast changing environment of the global auto industry.
Their agreement builds on an existing partnership that was announced in 2017 under which Toyota was to help Suzuki to develop and market electric cars in India, while Suzuki helps Toyota increase its presence in the fast-growing Indian market.
Under the latest agreement, Suzuki will source hybrid systems for cars it sells worldwide from Toyota said both companies in a joint statement.
So as to bring down costs, Suzuki’s hybrid vehicles for the Indian market will be made using engines and batteries that will be produced locally by Toyota. As for the European market, Toyota will produce electric vehicles based on its RAV4 SUV crossover and Corolla wagon for Suzuki.
In return, Suzuki will produce two compact models for Toyota in India based on its Ciaz and Ertiga models, and supply Toyota with gasoline engines for compact vehicle models sold in Europe.
Suzuki will also produce its Baleno, Vitara Brezza, Ciaz, and Ertiga models for Toyota to sell in Africa.