Toyota, Suzuki to explore global technology partnership: Things could get electric

Two Japanese auto giants, Toyota Motor Corp and Suzuki Motor Corp have joined hands to explore a technology partnership. The same is expected to help both companies overcome technological challenges, which is currently the need of the hour in every industry. Toyota and Suzuki would make for a great partnership. Reuters points out that Toyota’s technological superiority and Suzuki’s cost conscious compact cars will make for great combination. As for what the two Japanese automakers plan to do with the partnership, this has yet to be disclosed in detail. For now the companies have only begun discussions with reports stating that no plans have been set in stone. There are however hints that Suzuki is in trouble. Reuters quoted Suzuki chairman Osamu Suzuki, “R&D in the auto industry is changing rapidly. The future looks perilous.” hinting that the company is struggling to keep pace with the rapid developments of the competition when it comes to R&D. The Economic Times reports  that the partnership will not affect things out here in India. Out here, Suzuki is entwined with Maruti which happens to be the current market leader, while Toyota is tied up with Kirloskar, a company that specialises in diesel engines. “There is no consideration at this point of time for the Indian market. However, we, Toyota, think it is imperative that we solve the issues of Indian market of vehicle safety, environment and energy supply for future Indian auto industry growth,” said N Raja, senior vice president of sales and marketing at Toyota Kirloskar Motor, reported the Economic Times. These partnerships mean a lot more in the automotive industry. This is more so with the automotive sector as the the electric revolution is set to hit mainstream production vehicles by 2020. German automotive giants like Volkswagen and Mercedes-Benz are readying their arsenal of electric vehicles as announced at the Paris Motor Show. So it is high time that even a company like Toyota (which is already into electrics and hybrids) pulls up its socks because the stakes are high and the whole ‘West versus East’ competition in electric cars is about to heat up.