Toyota Motor Corp. and Suzuki Motor Corp. said on Monday they plan to trade expertise in parts supplies and research and development in an agreement that will aid expansion in emerging markets and help them cope with rapid technological sophistication.
Any deal could see Toyota benefit from a supply chain that has helped Suzuki dominate India’s massive auto market while Suzuki could hope to access Toyota’s innovations in automated driving, artificial intelligence and low-emission vehicles.
“Toyota and Suzuki have agreed to work toward the early realisation of a business partnership,” they said in a joint statement, singling out areas of possible cooperation such as procurement and environment — and safety-related technology. They added that they saw no need to rush into a capital tie-up.
The agreement comes about four months after Suzuki, Japan’s fourth-biggest automaker, said it was struggling to keep up with R&D in an industry simultaneously exploring non-petrol engines and self-driving vehicles — areas in which it has yet to announce any major strategy.
While Toyota has the financial fire power to keep up with technology, it has long struggled to win market share in India where drivers prefer the type of affordable compact cars in which Suzuki excels. — Reuters
