India will play an important part in the business partnership announced on Monday by Toyota Motor Corporation and Suzuki Motor, a senior Toyota Kirloskar executive said.
Toyota Motor Corporation and Suzuki Motor concluded a memorandum towards business partnership that will enable both sides explore possibility of co-operation in areas including environment and safety, IT and mutual supply of products and components.
While the details are not out yet, people in the know say, it could mean Toyota and Suzuki could work closely on smaller hybrid vehicles and source components jointly which would increase the economies of scale and bring down the cost, at a time when challenges on emission on eroding natural resources are on the rise.
How soon the work will crystallize will be known only after the preliminary blueprint is finalised, the person said.
A core team from the two companies are privy to the discussions. A person involved in the discussion from Toyota’s side could be Naomi Ishii, the former MD of Toyota Kirloskar, who is a key member of the strategy team.
In a statement to ET, Akito Tachibana, MD of Toyota Kirloskar said, with an aim to jointly contribute to resolution of social issues and sustainable growth of an automobile based society, TKM’s parent company, Toyota Motor Corporation (Toyota) have signed an agreement with Suzuki Motor Corporation (Suzuki) announcing to collaboratively begin examinations for business partnership in areas such as environmental technologies, safety technologies, information technologies. This is aimed to achieve sustainable growth with mutual business interests staying independently competitive in the market.
“As we hear that India is one of the candidate regions considered to be covered in the implementation of this partnership, we at TKM look forward to the outcome under this memorandum,” added Tachibana.
Toyota and Suzuki have agreed to work toward the early realisation of business partnership. To that end, the two companies are to immediately establish an implementation framework aimed to bringing to realisation the points agreed on Monday.
“Currently they have decided on the framework of what areas to work on. The identified areas will be further examined, but I am sure, they will ensure that the competition law is not violated here in India or in Japan. India is part of the study, the document says so, but I dont what is it for,” observed R C Bhargava, chairman of Maruti Suzuki from the announcement document.
Announcing the partnership, Akio Toyoda, the president of Toyota Motor Corporation recalled the comment made by Osamu Suzuki at the October 2016 press conference wherein the Suzuki chairman is quoted of having said, “if you are running a company, you have to continue to take on challenges. You are running your company for the benefit of society and this remains unchanged.” This comment deeply resonated within him, Toyoda said.
“We want to cooperate toward enabling all people throughout the world to truly experience the joy of mobility and to achieving a society of future mobility full of smiles. I am truly thankful for having been given this opportunity to work together with a company such as Suzuki, which overflows with the spirit of challenge. Toyota looks forward to learning much,” added Toyoda.
Suzuki Chairman Osamu Suzuki said under the leadership of president Akio Toyoda, Toyota was enthusiastic throughout our discussions regarding the partnership, even though such was sought by Suzuki, which was concerned about the development of advanced technologies.
“In response to Toyota’s display of enthusiasm, Suzuki also intensively engaged in the discussions, and we now stand at the starting point for building a concrete cooperative relationship. I want to give this effort our fullest and to aim at producing results that will lead Toyota to conclude that it was the right thing for Toyota to have decided to work together with Suzuki,” added Suzuki.
Source: Economic Times