Under cross-badging, partner companies share the same car or platform with minor changes to the architecture but significant changes to the exterior and interiors. The two companies will continue to sell the three models from their original networks and the new variants will be additions to their portfolios.
The Toyota-Suzuki pact comes at a time when there is a global movement toward forming alliances to explore and develop shared mobility, connected cars and green technologies — the forces that are disrupting the auto industry. The two signed a memorandum in February 2017 for joint development of new technologies.
Toyota, Suzuki to badge vehicles as per their brand philosophy
Toyota and Suzuki have concluded a basic agreement toward the mutual supply of hybrid and other vehicles between the two companies for the Indian market. Specifically, Suzuki will supply the Baleno and Vitara Brezza vehicle models to Toyota, while Toyota will supply the Corolla vehicle model to Suzuki,” a statement jointly issued by the two companies said.
Sources said that both companies will badge the vehicles as per their brand design philosophy as well as market understanding and reach. “Thus, we may have Toyota dealers selling the Baleno and Brezza with new names, and their branding. And Maruti’s Nexa may perhaps sell the Corolla with a new name and different design cues,” a source said.
In India, Ford and Mahindra are developing vehicles together, Tata-Fiat Chrysler produce vehicles from the same factory, VW group companies — Audi, Skoda and Volkswagen share platforms; and Renault-Nissan cross-badge models.
The companies are fully aware that the products, having the same architecture and engines but a different design and brand, may well compete with each other. “By challenging and competing with each other with the goal of mutual improvement, Toyota and Suzuki aim to invigorate the Indian automotive market to further enhance their respective products and services to be offered to customers,” the statement said.
It is yet not clear how many cars the companies will reserve for each other, and whether they will also look at sharing other vehicles too. “For the vehicle models covered by the basic agreement, the two companies will enhance their efforts to procure components locally to the extent possible... Toyota and Suzuki remain committed to the widespread acceptance and use of less fuel-consuming vehicles to help India reduce its environmental footprint and enhance energy security,” the statement added. Attempts at crossbadging have had limited success in the Indian market so far.