Japanese car majors Toyota and Suzuki enter capital alliance
Toyota Motor and Suzuki Motor have entered into a capital alliance wherein Toyota will acquire 5 per stake in Suzuki for 120 billion yen and Suzuki will pick in a stake in Toyota for 60 billion yen. In 2016, both the automobile manufacturers were exploring the potential of partnership. The latest update is in line with the agreement of both the companies jointly working on technological sharing and product development. Also, the entry into capital alliance also aims as accelerating the process of driverless or autonomous cars as well as development of electrics and hybrids that will be used by both the automobile manufacturers.
Suzuki is known for its vast network and specialty in the development of affordable cars, whereas Toyota's innovation in hybrid tech and electric vehicles is its nice. Both the car manufacturers plan to mutually develop a variety of next-gen offerings which will help them save in huge costs related to research and development as well give each other access to autonomous and hybrid tech. The first product from the Toyota Suzuki association, the Glanza is already on sale in India. There are plans of sharing the Vitara Brezza, Ertiga and the Camry Hybrid in the future.