Maruti Suzuki India to supply 2nd OEM model to Toyota under global partnership
NEW DELHI, NNA - Maruti Suzuki India Ltd. will supply Toyota Kirloskar Motor Pvt. Ltd. with a derivative of its Vitara Brezza SUV, the second model to be supplied as part of a global partnership between the two Japanese automakers.
Toyota Motor Corp. and Suzuki Motor Corp., their respective parent companies, signed a memorandum of understanding in February 2017 to examine potential business partnerships in various areas, including the mutual supply of products and components, environmental technologies, and safety technologies.
In 2019, Maruti Suzuki, India’s largest passenger carmaker, began supplying the Baleno hatchback model to Toyota Kirloskar Motor. The vehicle was then renamed as the Toyota Glanza, which was launched in June last year.
Maruti Suzuki India said in a press release Wednesday that the latest OEM supply of a derivative of the Vitara Brezza “will result in incremental sales for the company.”
In the world’s fourth-largest automobile market, Suzuki’s subsidiary sold nearly 1.3 million units in the year through March 31, 2020, with an outstanding market share of 47 percent in the passenger car segment. Toyota sold over 110,000 cars with 4 percent share, according to the Society of Indian Automobile Manufacturers, an industry body.
The pair announced in August 2019 that they agreed to a capital alliance under which Toyota would acquire 24 million shares of common stock in Suzuki worth 96 billion yen ($895 million), while Suzuki would buy, via purchase in the market, shares in Toyota equivalent to 48 billion yen.
The alliance was aimed at promoting collaboration in new areas, including the field of autonomous driving.