Maruti Cars To Be Manufactured By Toyota — To make Use Of Idle Capacity In Their Bangalore Factory

Updated: Thursday, September 20, 2018, 13:15 [IST]

Suzuki had recently invested USD 1 Billion into the Toyota India plant based on the outskirts of Bangalore. According to their partnership, the investment would be used to expand the facility for the production of the restyled and rebadged Maruti Suzuki Baleno vehicle.

Now recent reports from Livemint, Toyota has decided to manufacture Suzuki cars to make use of it unutilised capacity at its second factory. This facility currently produces the Etios and Etios Liva offerings.

Toyota To Manufacture Suzuki Cars In Their Bangalore Factory; Likely To Be The Brezza Or Baleno

It is still unclear as to which Suzuki model would be made at the Toyota Factory in Bangalore. Although, it is known that Toyota will be receiving both the Baleno and the Brezza products from Suzuki. In return, Toyota will provide Suzuki, their Corolla sedan offering.

Reports also stated that senior executives from both the Japanese automakers visited both factories to check the feasibility of production. While also checking the quality standards of manufacturing.

The partnership between the two brands will allow both Toyota and Suzuki to restyle and rebadge the cars and sell them under their own branding. The rebadged vehicles will also be sold through their individual dealerships as well.

Suzuki owns 51 per cent of the market share in India, under the passenger vehicle segment. Compared to Toyota's five per cent market share. AlthoughToyota is said to produce Suzuki cars in their plant, the later will be involved in some capacity as well.

The partnership between the two Japanese automakers, however, doesn't stop with rebadging each other's products. Both companies will also be working together on electric and hybrid vehicles for the Indian market.

We also had already reported earlier that, starting next fiscal year Suzuki will be supplying 25,000 Maruti Suzuki Baleno's to Toyota. These will be the first re-badged cars to be sold through the partnership agreement.

Thoughts On The Suzuki-Toyota Partnership

Both brands are yet to announce the model which will be produced at Toyota's facility in Bangalore. There is also still no news as to whether the rebadged cars will be exclusive to the Indian market or exported as well. However, the partnership will prove to be a win-win situation for both companies, by giving access to each other's technological and production facilities.