... In­dia May be Part of the Jour­ney

Gains likely as cos may work closely on small hy­brid ve­hi­cles, com­po­nent sourc­ing The Desi Drive

The Economic Times - - Brands & Companies - Ke­tan.Thakkar @times­group.com

Mum­bai: In­dia will be part of a busi­ness part­ner­ship Toyota Mo­tor Cor­po­ra­tion and Suzuki Mo­tor an­nounced on Mon­day to explore pos­si­bil­ity of co­op­er­a­tion in ar­eas in­clud­ing en­vi­ron­ment, safety and in­for­ma­tion tech­nolo­gies, and mu­tual sup­ply of prod­ucts and com­po­nents, a Toyota Kir­loskar ex­ec­u­tive said.

De­tails of the agree­ment be­tween the two Ja­panese car­mak­ers are not yet out. But in­dus­try in­sid­ers said it could mean Toyota and Suzuki work­ing closely on smaller hy­brid ve­hi­cles and sourc­ing com­po­nents jointly, to in­crease economies of scale and bring down costs at a time when car­mak­ers are un­der in­creas­ing pressure to re­duce emis­sions and stop erod­ing nat­u­ral re­sources.

How soon the part­ner­ship ex­tends to In­dia will be­come clear only after the pre­lim­i­nary blue­print is fi­nalised, said the ex­ec­u­tive at Toyota Kir­loskar Mo­tor, In­dian sub­sidiary of the world’s sec­ond-largest car­maker.

Only a se­lect group of ex­ec­u­tives at the com­pa­nies are privy to frame­work of the agree­ment and one of them could be for­mer Toyota Kir­loskar man­ag­ing di­rec­tor Naomi Ishii, who is now part of the strat­egy team at Toyota.

In a state­ment to ET, Ak­ito Tachibana, MD at Toyota Kir­loskar, said the part­ner­ship is aimed at achiev­ing sus­tain­able growth with mu­tual busi­ness in­ter­ests while stay­ing in­de­pen­dently com­pet­i­tive in the mar­ket.

“As we hear that In­dia is one of the can­di­date re­gions con­sid­ered to be cov­ered in the im­ple­men­ta­tion of this part­ner­ship, we at TKM look for­ward to the out­come un­der this mem­o­ran­dum,” he said. RC Bhar­gava, chair­man of Maruti Suzuki, said that as per the doc­u­ment he has ac­cess to, the two firms have iden­ti­fied ar­eas to work on, which will be fur­ther ex­am­ined. “But I am sure they will en­sure that the com­pe­ti­tion law is not vi­o­lated here in In­dia or in Ja­pan,” he told ET. “In­dia is part of the study, the doc­u­ment says so.”

Toyota and Suzuki have agreed to im­me­di­ately es­tab­lish an im­ple­men­ta­tion frame­work to re­alise the part­ner­ship at the ear­li­est.

While an­nounc­ing the deal, Akio Toy­oda, pres­i­dent of Toyota Mo­tor Cor­po­ra­tion, re­called a com­ment made by Suzuki chair­man Osamu Suzuki in Oc­to­ber last year: “If you are run­ning a com­pany, you have to con­tinue to take on chal­lenges. You are run­ning your com­pany for the ben­e­fit of so­ci­ety and this re­mains un­changed.” Toy­oda said this com­ment deeply res­onated within him.

Suzuki said, “I want to give this ef­fort our fullest and to aim at pro­duc­ing re­sults that will lead Toyota to con­clude that it was the right thing for Toyota to have de­cided to work to­gether with Suzuki.” Maruti Suzuki Toyota Kir­loskar

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.