Toyota Motor Corporation & Suzuki Motor Corporation have struck a massive deal for the Indian market. Both brands have come to an agreement to supply cars built by each party. These will ideally be rebadged (Badge Engineered) cars, similar to what Renault & Nissan have been doing so far.
Being more to the point, Maruti Suzuki will share the Baleno & Vitara Brezza models with Toyota. Toyota will then rework on the cosmetics of this car, slap a Toyota badge, and sell these cars in their own showrooms. Similarly, Toyota will share the Corolla with Maruti Suzuki. When this will materialize at the showroom level is yet to be decided, even how many cars, specifications and pricing details are unknown.
While it is unknown how selling cars from the other party will benefit either Toyota or Maruti Suzuki; other car brands in India are sure to feel the heat.
Toyota and Maruti Suzuki have also agreed on developing battery electric vehicles in the country around 2020. The other cars which will use either petrol or diesel, both companies will focus on developing fuel efficient products for our market.
So, are you ready to see the Baleno or Vitara Brezza badged as something else in a Toyota showroom. The Corolla is already an expensive and underpowered car sold by Toyota, how will Maruti Suzuki managed to sell it volumes as per their own standards? Time will tell. This, anyway, is a very interesting way forward. Toyota has trust, Maruti Suzuki has volumes along with trust.