Toyota Motor Corp. is considering offering Suzuki Motor Corp. a hybrid system for global sales and enhancing a joint car development project for India, according to an expanded tie-up deal unveiled Wednesday.
Under the agreement, Suzuki can sell hybrids developed by Toyota, namely the RAV4 and Corolla Wagon, carrying the Suzuki badge in the European market, the Japanese automakers said.
For India, a market where Suzuki has a strong footprint, Toyota and Suzuki plan to jointly develop a multipurpose vehicle under the deal.
Toyota and Suzuki agreed in February 2017 to start talks for a business partnership in areas such as environmental, safety and information technologies.
They have since been working on the ideas of mutually supplying vehicles and developing electric vehicles mainly for India, a major car market following China, the United States and Japan.
The expansion of the business partnership with Suzuki “will help give us the competitive edge we will need to survive this once-in-a-century period of profound transformation,” Toyota President Akio Toyoda said in a statement.
Suzuki Chairman Osamu Suzuki said, “We appreciate the kind offer from Toyota to let us make use of their hybrid technology.”
Suzuki has more than a 40 percent share in India but lags behind in development of advanced vehicle-related technology.
Toyota has been struggling in the South Asian country and is hoping to boost its presence there through the collaboration with Suzuki.