FILE PHOTO : A Toyota logo is shown at the 89th Geneva motor show in Geneva, Switzerland, 5 March 2019. REUTERS/Pierre Albouy
NAGOYA (Reuters) – Toyota Motor Corp and Suzuki Motor Corp on Wednesday said that they plan to produce electric vehicles (EVs) and compact cars for each other to better compete with fast-changing technologies in the global auto industry.
The agreement is based on a partnership between the two Japanese companies announced in 2017, under which Toyota is helping Suzuki to develop and market electric cars in India, while Suzuki will help Toyota increase its presence in the fast growing Indian market.
Under the new agreement, Suzuki will be the source hybrid systems for cars sells all over the world of Toyota, which pioneered hybrid vehicles with the Prius more than 20 years ago, the companies said in a joint statement.
Suzuki ‘s hybrid vehicles for the Indian market will be made with the aid of motors and batteries can be locally produced by Toyota. In addition, Toyota manufactures electric vehicles on the basis of the RAV4 SUV crossover and Corolla wagon for Suzuki in the European market.
In return, Suzuki produces two compact models for Toyota in India on the basis of the Ciaz and Ertiga models, and the range of Toyota petrol engines for compact cars sold in Europe.
Suzuki will also be the Baleno, Vitara Brezza, Ciaz and Ertiga models for Toyota to sell in Africa.
Reporting by Naomi Tajitsu; Editing by Simon Cameron-Moore