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Toyota Kirloskar and Suzuki Collaborate To Strengthen Their Alliance

  • Published | 22 March 2019
An agreement signed between Toyota and Suzuki for supplying vehicles, including hybrid electric vehicles (HEV) and powertrain technologies along with platforms which will drive the Electric Commercial Vehicle market.
India: Toyota Motor and Suzuki Motor have agreed to take concrete steps toward sharing more models, vehicle architectures and electrified vehicle technology. Toyota and Suzuki have been considering such collaboration since having signed a memorandum of understanding toward business partnership on February 6, 2017. Since then, Toyota Kirloskar has agreed to source the premium Baleno hatchback and compact SUV Vitara Brezza from Suzuki’s Indian unit, Maruti Suzuki. The discussion between the Japanese automakers is on three major subjects: sharing of electrified vehicle technology including Toyota's patented hybrid vehicle systems, sharing of Suzuki's compact vehicle architecture and engines and leveraging each other's manufacturing capabilities for global markets. By 2022, the local unit of Toyota will start making Suzuki cars in its factory at Bidadi on the outskirts of Bengaluru. It would also export these vehicles — Baleno, Vitara Brezza, Ciaz and Ertiga — to Africa under the Toyota badge. Suzuki, in turn, would get two new electrified vehicles built on the Toyota platform: the RAV4 and Corolla Wagon for the European market. Both companies have also agreed to jointly develop and share a C-segment MPV for the Indian market. Toyota would be banking on Suzuki's expertise of compact car expertise and it would adopt newly developed Suzuki engines for compact vehicles. According to BlueWeave Consulting, India automotive industry is at the flourishing stage, supportive government policies and high public & private sector investment in the region are booming the industry. The growing concern for carbon dioxide emission around the world is leading to a gradual phase-out of conventional vehicles. Rising public awareness of air quality and the burden of disease caused by air pollution is an essential step in reducing air pollution and improving public health which is accelerating market demand for electric vehicles. The transportation sector has been one of the major focus areas as the transportation and mobility accounts for second largest share in terms of emissions after electricity generation. When it comes to vehicle electrification, which is expected to make further inroads, hybrid technologies are seen as playing a huge role in many markets. As the global temperatures are increasing at an alarming rate, governments and industry around the world have pledged to reduce greenhouse gas emissions. Automobile manufacturers are focusing on the reduction of the weight of the vehicle for enhanced power, performance, mileage, and efficiency. The stringent emission norms will ultimately increase the price of conventional cars and encourage customers and automobile companies to adopt low-emission cars, like HEVs, surging the demand for electric vehicles over the forecast span. According to the recently published report by BlueWeave Consulting on “Global Electric Commercial Vehicles Market by Propulsion type (BEV, HEV, PHEV, FCEV), by Vehicle type (Bus, Truck, Van, Others), by Component (Motor, Battery, Others) – Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2014-2024,” the Global Electric Commercial Vehicles market is projected to grow at a CAGR over 13.0% during the forecast period in terms of value. The market is expected to reach over USD149, 316 Mn by 2024, supported by government subsidies and tax rebates for commercial electric vehicles. Need for fuel-efficient and emission-free vehicles and the increasing demand for the electric commercial vehicle such as an electric truck in the logistics industry to minimize the additional liability of fuel expenses. Innovations in EV battery capacity, which will enable the electric commercial vehicle to carry heavy loads over a longer range, can create new revenue generation opportunities. According to the upcoming report by BlueWeave Consulting on “India Electric Commercial Vehicles Market by Propulsion type (BEV, HEV, PHEV, FCEV), by Vehicle type (Bus, Truck, Van, Others), by Component (Motor, Battery, Others) – Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2014-2024,” India Electric Vehicle is projected to grow over a forecast period. The demand for electric vehicles is governed by an increase in demand for fuel-efficient, high-performance, and low-emission vehicles. In addition, the trend of reduction in vehicular emission due to stringent rules & regulations in several states and growth of public charging infrastructure in India are fuelling the market growth.