Toyota, Suzuki enter a cross-badging alliance: Know what it means
What's the story
Japanese automobile giants Toyota and Suzuki have entered a cross-badging alliance for the Indian market. Under the agreement, by 2019, Toyota and Suzuki will manufacture certain car models for each other in India.
This agreement is in continuation of a memorandum the two companies signed in February last year for the joint development of new technologies.
Here's more on this development.
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Toyota, Suzuki enter new alliances
"By challenging and competing with each other with the goal of mutual improvement, Toyota and Suzuki aim to invigorate the Indian automotive market to further enhance their respective products and services to be offered to customers," the two companies said in a joint statement.
Cross-badging
Toyota, Suzuki to supply each other cars in India
As part of the agreement, Suzuki will supply the Brezza and Baleno models to Toyota and in return Suzuki will get the Corolla model.
Under cross-badging, these cars will see changes to the interiors and exteriors and will be signed under the name of the company selling them i.e. say Suzuki Baleno with changes and a new name, selling under a Toyota badge.
Win-win agreement
Toyota and Suzuki forge a symbiotic relationship
While Toyota prospers from its SUVs (Innova and Fortuner) and sedans (Corolla and Camry) in India, it hasn't been successful in the small car segment.
With this agreement, Toyota will look to benefit from Suzuki's reach and cost-efficiency in India.
Likewise, Suzuki, which dominates the small car segment in the country, will bolster its presence in the mid-size sedan market with Toyota's Corolla.