Japanese auto majors Toyota Motor Corporation and Suzuki Motor Corporation on Thursday said they have concluded a basic agreement for supplying hybrid and other vehicles to each other for the Indian market.
As per the agreement, Suzuki will supply premium hatchback Baleno and compact SUV Vitara Brezza to Toyota, while Toyota will supply sedan Corolla to Suzuki.
"Details on each model, such as the schedule of the start of supply, number of supplied units, vehicle specifications, and supply pricing, will be considered at a later stage," the two companies said in a joint statement.
These models will be sold by the respective Indian subsidiaries of Toyota (Toyota Kirloskar Motor) and Suzuki (Maruti Suzuki India) through their sales networks, it added.
Currently, Maruti Suzuki India's Baleno and Vitara Brezza are among the top selling models in India.
"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 statement said.
The two companies further said for the vehicle models covered by the basic agreement, they will enhance efforts to procure components locally to the extent possible toward the achievement of the government's 'Make in India' initiative.
"Toyota and Suzuki remain committed to the widespread acceptance and use of less fuel-consuming vehicles to help India reduce its environmental footprint and enhance energy security," they added.
In February 2017, Toyota and Suzuki had concluded a memorandum towards business partnership and since then, they have been exploring concrete projects for collaboration in areas including environmental technology, safety technology, information technology, and the mutual supply of products and components.
Subsequently, in November 2017 the companies announced an MoU to consider a cooperative structure for introducing battery electric vehicles in India around 2020.
"Today's announcement is another outcome and underscores the progress Toyota and Suzuki have together made, and it aims to bolster both companies' product line-ups and encourage competition in the Indian automotive market," the statement added.