According to a media report, the Indian arm of the Japanese carmaker Toyota will be expanding its product portfolio with nearly 12 vehicles in the span of 5 to 7 years. It is also being reported that out the 12 cars, a good number is likely to be rebadged Suzuki cars. The new products will be targeted towards the sub INR 12 lakh market which holds nearly 80% market share. The new Toyota product line is also expected to have hybrid and electric powertrain options.
Toyota has been operating in India with a relatively small portfolio and a very narrow segment in the auto industry and the alliance with Suzuki will change the brands reach in India. This new approach will let the Japanese manufacturer reach the volume-rich segment in India.
With Toyota’s Etios and Liva coming to an end of their life cycle and they may not meet the upcoming norms, the Suzuki-Toyota alliance recently launched the Toyota Glanza which is the rebadged version of the Maruti Suzuki Baleno, this move will help the brand enter a new segment without major investments in developing new platforms and engines specific to that particular market.
Toyota is lining up to launch the reworked Maruti Suzuki Vitara Brezza crossover by next year, followed by the Maruti Suzuki Wagon R EV, which is expected to be revised in a Toyota avatar. The brand will further launch the Toyota sibling of the Maruti Suzuki Ciaz in the year 2021-22 followed by the rebadged version of the Ertiga. The alliance is also reported to be working on a C-SUV/MPV together which is planned for 2023.
The brand engineering card has not been received very well in the Indian market before, as seen with various brands, one, for example, is the Renault-Nissan’s attempt to sell the same car with two price points, that did not do well. But experts predict that, on a global scale, the alliance will result in an additional sales of nearly 5,00,000 units in 10 years.
Toyota and Suzuki will benefit from each other where the former will be able to expand its product portfolio in new segments without having to invest heavily, whereas the latter will benefit by receiving technology such as hybrid powertrains, which is a Toyota forte.