The two names Suzuki and Toyota have created an aura around themselves as market leaders in the automobile industry. In the business environment, we often see various collaborations among the companies, some being rivals even. This is mainly for the
mutual benefits the collaborating companies seek with each other. These benefits may be such as gain in the market share, revenue growth, profits, technological advancements etc.
One such alliance to look forward in future is the Suzuki-Toyota alliance. Though it is still in the talking stages there is a positive expression from Toyota Kirloskar Motor Vice-Chairman, Shekar Viswanathan. In India, the discussions were under process with Suzuki to use various platforms for electric vehicles.
Toyota is of the view that the use of these platforms would be greatly in favor of them. In addition, the boost in the manufacturing sector and automobile sector in particular, by the Indian Government encourages the MNC’s to invest in India. But for the use of EV’s, firstly there must be a great infrastructure development to cater to the needs of the EV’s i.e Charging points, service centers etc. After the infrastructure development comes to the technology development and affordability criteria by the people of India as hurdles. Even if the Suzuki-Toyota partnership is able to crack the technology and affordability puzzles, selling EVs in the subcontinent will still remain an uphill task.
The alliance between the giants and already existing stronghold of Suzuki on Indian market will make it even tougher for the competitors like Daihatsu to enter the Indian market. But for this to last long i.e to keep away the competitors for a long time the alliance must hold on to positive terms. It may seem like a joint product to come out is
not very near, but the brand identity and the loyal customer base will help in keeping away the competitors.