Indian car market, which is currently the fifth-largest car market in the world, is all set to take it a notch up. In order to do so, two of Japan’s big auto firms have gone into an agreement where the two will be allowed to sell cars manufactured by each other. The agreements that will come into action from 2019 are expected to benefit Toyota by helping it in increasing its market share in India. Reports suggest that Maruti Suzuki’s current offerings — Baleno compact and Vitara Brezza mini SUV — will be sold under Toyota’s brand. Meanwhile, Toyota’s recently ousted, Corolla will be sold under Maruti Suzuki’s branding.
Under the cross-branding agreements, the auto manufacturers will be sharing the same car with some minor changes to its architecture. However, in order to rebrand the products, the cars are expected to get some major exterior and interior changes. The agreement will not take down the original models but will add the new variants to their respective portfolios. The following tie-up between Maruti Suzuki and Toyota come to light when global automakers are joining hands to develop more hybrid cars to embrace the coming future. Maruti Suzuki and Toyota had signed a memorandum in February 2017 in order to come together to develop new technologies.
Meanwhile, reacting to the reports of cross-branding between Maruti Suzuki and Toyota, motorists say that the following agreements have not created much buzz among the car enthusiasts as the agreement seems to be more business oriented than customer oriented. As per sources, both the auto giants will badge each other’s vehicles as per their own philosophy and also as per the market understanding. A statement issued over the collaboration read, “By challenging and competing with each other with the goal of mutual improvement, Toyota and Suzuki aim to invigorate the Indian automotive market to further enhance their respective products and services to be offered to customers.”
The following reports of Toyota and Maruti Suzuki joining hands comes to light after a number of auto giants had collaborated in order to bring reform in the auto industry. Some giants are as follows, recently it was reported that Ford and Mahindra will be developing vehicles together. Also, Tata-Fiat Chrysler gets most of their vehicles manufactured from the same factory.For all the latest Business News, download NewsX App