Japanese OEMs Toyota and Suzuki have agreed to begin considering concrete ways of working together, including the mutual supply of engines, platforms and technology.

The step forward follows a business partnership memorandum the companies signed two years ago, fleshed out in more detail last May.

Now they plan to bring together Toyota’s strength in electrification and Suzuki’s in technologies for compact vehicles, as well as grow in new fields such as collaboration in production and popularising electrified vehicles.

The proposed arrangements include Toyota supplying its hybrid system to Suzuki globally; widely spreading hybrid electric vehicle (HEV) technologies in India through local procurement of HEV systems, engines, and batteries; and providing two new electrified vehicles built on Toyota platforms (the RAV4 and Corolla wagon) to Suzuki in Europe.

Suzuki will supply two compact vehicles built on its platforms (the Ciaz and Ertiga) to Toyota in India, and Suzuki’s India-produced vehicles (Baleno, Vitara Brezza, Ciaz and Ertiga) to Toyota, targeting the African market.

Under the planned cooperation, Toyota will also adopt newly developed Suzuki engines for compact vehicles, to be supported by the company’s major part supplier Denso and manufactured at Toyota Motor Manufacturing Poland.

The proposed collaboration also envisages the companies drawing on their strengths in technological development and production, such as Suzuki’s expertise in developing vehicles in India for a joint development of a Toyota C-segment multi-purpose vehicle (MPV) and supplied to Suzuki as well as production at Toyota Kirloskar Motor (TKM) in India of the Suzuki-developed Vitara Brezza compact SUV from 2022.

The companies said that though they will be continue to fairly and freely compete against each other, they intend to consider further collaboration to realise a sustainable future mobility society subject to respecting all applicable laws.

Toyota president Akio Toyoda (pictured top left) commented : “We believe that the expansion of our business partnership with Suzuki, from the mutual supply of vehicles and powertrains to the domains of development and production, will help give us the competitive edge we will need to survive this once-in-a-century period of profound transformation.

“We intend to strengthen the competitiveness of both our companies by applying our strong points and learning from each other.”

He also commented: “Through our new agreement, we look forward to the wider use of hybrid technologies, not only in India and Europe, but around the world.”

Suzuki chairman Osamu Suzuki (pictured top right) highlighted the progress made in the partnership since last May, and the company appreciates “the kind offer from Toyota to let us make use of their hybrid technology.”