... India May be Part of the Journey
Gains likely as cos may work closely on small hybrid vehicles, component sourcing The Desi Drive
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