MUMBAI|NEW DELHI: The technology partnership that Suzuki Motor and Toyota Motor said they were exploring is unlikely to bring any changes to the way the two automakers are doing business in India, local executives said.
In fact, the competition between the two Japanese companies is expected to intensify in India, with Toyota’s Daihatsu unit planning to bring its small cars to compete in Maruti Suzuki’s bread-and-butter segment.
With a rapidly changing technology landscape and increasing development cost posing new challenges to automakers, SuzukiBSE -0.28 % and Toyota said on Wednesday that they were considering sharing R&D activities in the areas such as environment, safety and information technology, as well as looking for ways of working jointly on infrastructure development and establishment of industrial standards.
Suzuki Chief Executive Toshihiro Suzuki recently indicated to ET that his company was open to such partnerships.
“Setting up a wing inside is important to look at shared mobility solutions, but we are always open to discuss any partnership or look at joint initiatives,” he said on the sidelines of the Paris Motor Show.
The latest move is likely to play out strongly in a market like Japan, but no immediate impact is expected in the Indian market where Suzuki unit Maruti remains the market leader, way ahead of Toyota Kirloskar.
“There is no consideration at this point in time for the Indian market. However, we, Toyota, think it is imperative that we solve the issues of Indian market of vehicle safety, environment and energy supply for future Indian auto industry growth,” said N Raja, senior vice president of sales and marketing at Toyota Kirloskar.
“We would like to consider what we can do to contribute to the Indian market, with the understanding that the two companies will keep competing with each other in a fair and independent manner.”
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