In a bid to compete with the lightning-fast technology, Toyota Motor Corp has joined hands with Suzuki Motor Corp in producing electric vehicles (EVs) for each other in the global auto industry.
Gone are the days when people looked up for a conventional combustion engine vehicle as the world has transformed into an electric-driven technology in the automobile sector. To cope up with the market needs and follow the growing trend, a majority of automobile manufacturers have stepped up with the addition of electric vehicles (EVs) in their product line-up. In a similar connection, the two Japanese auto-giants Toyota and Suzuki has decided to manufacture electric and compact vehicles for each other under an agreement which would rather compliment both companies in their own segments. As announced, both the auto manufacturers will be following an initial R&D tie-up. This particular agreement would allow them to better compete in the trending technology setup.
The two automakers will subsequently pool their strengths as both of them offer their own respective specialized line-up of cars. Suzuki is well-known for its compact yet affordable cars, an area where Toyota has no foot mark. On the other hand, Toyota is undoubtedly a leader in hybrid technology and making further investments in automated driving technology to stay ahead in the competition. Toyota Prius is a prime example of what the company holds the pioneer rank in hybrid technology. Therefore, Suzuki will be looking to extract maximum benefit out of this agreement. As per the details of the partnership, Suzuki will be sourcing the gasoline hybrid system for cars which is sold by Toyota in all parts of the world whereas Suzuki will produce compact cars for Toyota in return.
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The agreement promises to benefit Suzuki in developing lower-emission vehicles and self-driving cars, in particular. The cost-conscious company has been lagging behind in the competition of these categories of vehicles. In a statement, the President of Toyota Akio Toyoda said that this business partnership with Suzuki will allow both companies to gain a competitive edge in the transformation period of the automobile industry. They will partner in the European auto sector where Toyota will be producing electric vehicles for Suzuki based on two of its models i.e. RAV4 SUV crossover and Corolla Wagon. In return, Suzuki will be supplying combustion engine vehicles for the desired compact vehicles to Toyota. Similarly, the joint forces will be benefiting each other in the African auto market as Suzuki plans to produce Vitara Brezza, Ciaz, Baleno and Ertiga models for its partner. After re-branding and renaming process, these vehicles will be sold as Toyota models in the African region.
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