Toyota Suzuki grand Indian alliance ..

Showing the way ..

For the first time in its history, Toyota will manufacture cars of its competitor in its plants and popular Toyota models will be made in it's competitor's plants .. Is it cooperation, collaboration or manufacturing alliance, whatever be it, it's indication that automobile giants are getting stressed .. 

Suzuki Baleno

Toyota Motor Corp. (2017 global production 9 million) and Suzuki  Motor Corp. (2017 global production 3.3 million) join hands together to manufacture competitor's cars in their respective manufacturing facility in Bidadi, Bangalore India and Hansalpur, Gujarat India respectively.. Toyota in India (162,240) has just one tenth the output of Suzuki in India (16,46,000), though globally Toyota produces three times as much vehicles as Suzuki .. 

Toyota Corolla

Toyota will manufacture Suzuki's top brands Baleno and Vitara Brezza at their plant no.2 in Bangalore while Suzuki will manufacture Toyota's most famous and the world's largest sold vehicle Corolla in its Gujarat plant. While Suzuki will benefit from Toyota's advanced technology and production system, Toyota will benefit from Suzuki's country-wide maintenance, service facilities and it's superior domestic manufacturing supply chains.

This strategic collaboration is a win-win for both companies as there is significant give and take happening in both the companies.

Three valid questions that arise are the following - 

Suzuki Vitara Brezza

1. Is this the future of collaboration in global automobile manufacturing?

2. Will Toyota and Suzuki consolidate their manufacturing prowess in the global automotive sector ? 

Will these cars be a match to Tata's e-vision ?

3. Will Toyota once again emerge as top global automobile manufacturer overtaking Volkswagen and Renault ?

Their collaboration in the electric hybrid vehicles sector will once again redefine global manufacturing and supply chains.

Honda globally produced 5.2 million automobiles in 2017, 58% of Toyota global production. In India Honda manufactured and sold app 300,000 units output in India in 2017, double that of Toyota.

If the ecosystem improves and there is promise of excellent growth in India and Africa, will Toyota and Honda join hands in India and try to bring in better cars for the world in future ? 

George ..