Toyota and Suzuki are going to buy stakes in each other to strengthen their association.

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Toyota and Suzuki, two major Japanese automobile manufacturers, have announced that they are going to acquire stakes in each other. Toyota will buy 4.94% stake in Suzuki for an amount of 96 billion yen (Rs. 6510 crores) while Suzuki will acquire shares equivalent to 48 billion yen (Rs. 3255 crores) in Toyota.

While the first announcement of this alliance came out in 2016, it was in March 2019 when the companies announced that they’ve agreed for joint product development and collaboration in production by promoting mutual supply of products.

The alliance will make use of Toyota’s hybrid/electrification technologies and Suzuki’s strength in technologies for compact vehicles. The companies stated that the automotive industry is experience a turning point because of new regulations and new entries from mobility businesses.

Both the automakers want to overcome the challenges faced by the sector and achieve sustainable growth by building cooperative relationships in new fields while being competitors at the same time. The companies want to strengthen the technologies and products in which each company specialises and their existing business foundation.

Both Suzuki and Toyota have agreed to extend this partnership to other markets like Europe and Africa too. Suzuki will supply the Baleno, Ciaz, Vitara Brezza and Ertiga for Toyota to sell in Africa while Toyota will provide Suzuki its HEV technologies through local procurement of systems, engines and batteries. The Toyota Hybrid System will also be supplied to Suzuki for global markets.

When it comes to the Indian context, Toyota recently launched the Glanza here which is based on the Baleno. Suzuki will also supply the Ciaz, Vitara Brezza and Ertiga to Toyota for India and these vehicles will roll out from the Toyota plant by 2022.

Toyota Suzuki Stake Purchase

– Toyota will acquire a 4.94% stake in Suzuki
– Suzuki will acquire a stake worth 48 billion yen in Toyota
– Both companies will share technologies and products in the longer run

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