Suzuki Motor and Toyota Motor on Wednesday stated that they were into a technological partnership to explore green cars, safety and information technology. But this will make no difference to their business in the country.
According to a local executive, this collaboration will bring no changes into how the two automakers are doing business in India. In fact, the competition between the two Japanese firms is said to be more intensified.
With Toyota's Daihatsu unit planning to bring its small cars to India, to compete against the country's leading small car manufacturer Maruti Suzuki, the competition will heat up in India.
With changing technology and increase in development cost, Suzuki and Toyota stated that they are considering to share research and development activities in areas such as safety, environment and technology.
This move by both the companies is likely to pay out strongly in the Japanese market, but no changes are expected in India as Suzuki unit Maruti is the market leader in India.
Senior Vice President of Sales and Marketing at Toyota Kirloskar, N Raja said,"There is no consideration at this point of time for the Indian market."
He added, "We would like to consider what we can do to contribute to the Indian market, with the understanding that the two companies will keep competing with each other in a fair and independent manner."
This joint venture is said to be benefited in advanced technologies for electric and hybrid vehicles and in the field of the powertrain. Both the firms will have their advantages through this partnership, but it is unlikely to bring changes in their business strategy in India.
Read Also: Tata Tiago Records 50,000 Bookings - Waiting Period Up To Four Months