Under the agreement, Maruti will deliver its four models – Baleno, Ciaz, Ertiga and Vitara Brezza – to Toyota, while they will transmit their hybrid and electric technologies (EV) to Maruti, next to the Corolla sedan. The two automakers will also jointly develop a new segment of toyota C (MPV) to be delivered to Suzuki. In a letter to Maruti Suzuki CEO Kenichi Ayukawa, investment management and research firm Sanford Bernstein asked for clarification on what Maruti offers Toyota with respect to price agreements, which produces which model ultimately and what type of production margins Maruti will earn. “The challenge we see is the lack of communication beyond the unilateral press releases on the fine print of the agreement,” the company wrote. The merger has a significant impact on Maruti Suzuki India, India`s largest automaker, of which Suzuki is a majority shareholder. The deepening of relations between the two companies in Japan is already translating into closer cooperation between Maruti and Toyota Kirloskar Motor Ltd, Toyota`s Indian subsidiary. The two companies have already entered into a cross-badging agreement for products such as Baleno and Brezza de Maruti and Corolla of Toyota. The first of these, the Baleno, was recently upset and put on the market as Glanza by Toyota. The companies stated that the decision was taken to “establish and promote a long-term partnership between the two companies to promote cooperation in new areas, including the autonomous driving sector.” The implementation of the Capital Alliance Agreement is a confirmation and expression of the outcome of sincere and careful discussions between the two companies and will serve to establish and promote their future partnership in new areas. Japanese auto groups Toyota and Suzuki Motor Corporation agreed on Wednesday to enter into a capital alliance agreement to deepen cooperation that began in 2016, with Toyota acquiring 4.94 percent of Suzuki`s shares worth 96 billion yen, while Suzuki will buy a much smaller stake in Toyota worth 48 billion yen. With a stake as of March 31, 2019, Suzuki, with its stake in Toyota, would take 0.21% in itself as of today. Investors don`t like uncertainty. The collaboration between Toyota Motor Corp.
and Suzuki Motor Corp. on cross-badge cars has led to ambiguity for Maruti Suzuki India Ltd. In addition, the demand for passenger cars in the country is already moderate. Toyota Motor Corporation and Suzuki Motor Corporation have signed an agreement on a capital alliance to create and promote a long-term partnership and promote cooperation in new areas, including autonomous driving. Suzuki, meanwhile, would build two new electric vehicles on the Toyota platform: the RAV4 and the Corolla Wagon for the European market. The agreement also provides that Maruti Suzuki`s popular compact SUV, Vitara Brezza, will be manufactured from 2022 at the Toyota India plant (outside Bengaluru). This is expected to be… In March 2018, Toyota and Suzuki entered into a basic agreement to supply hybrid and other vehicles to the Indian market. Under the agreement, Suzuki was to deliver the hotels at the rear oblique Premium Baleno and Vitara Brezza to Toyota, while Toyota Suzuki was to supply a Corolla sedan. In order to develop and promote a long-term partnership between the two companies, the companies plan to acquire the shares of the other on the basis of the alliance. In a recent interaction with the FE, Toyota Kirloskar engine assistant director N Raja said that details regarding the modernization of Corolla is still under review and the headquarters will take a call about it.
“In any case, if we don`t upgrade it, we will have an agreement to jointly develop a multi-purpose vehicle,” he said. Japanese manufacturers Toyota and Suzuki have agreed to take concrete steps to share other models, architecture and technology of electric vehicles.