Toyota will supply its executive sedan, Corolla, to Suzuki to be sold through local unit Maruti Suzuki The deal allows both companies to address certain segments of the market where they have no or insignificant presence in India as well as run their factories at better utilisation rates. A person close to the development said supplies under the agreement would commence only in 2019.“Fundamentally, the agreement has been forged for exchange of vehicles between the two companies,” Maruti Suzuki chairman RC Bhargava said. The deal will enable Toyota to strengthen its presence in India’s intensely competitive small-car market, where it has limited presence with the Etios series. It will also help Maruti Suzuki expand its product range to the executive sedan segment with the Corolla Altis. At present, Maruti Suzuki does not have any product priced above Rs 12 lakh.VG Ramakrishnan, managing partner at consultancy firm Avanteum Partners, said the agreement would benefit Toyota more in the initial phase as volumes were more in the compact segment.

Source: Economic Times March 30, 2018 00:56 UTC