Suzuki, Toyota extend manufacturing alliance to EVs

Leading Japanese automakers Toyota Motor Corporation and Suzuki Motor Corporation today announced that Suzuki will manufacture and supply its first battery electric vehicle (BEV) SUV to Toyota, with production scheduled to begin in spring 2025 at Suzuki Motor Gujarat in India. This represents the first fully electric vehicle in the companies' OEM relationship.

The new SUV, designed exclusively as a BEV, promises sharp driving characteristics and ample cruising range. Notable features include a 4WD system option for enhanced performance on rough terrain. The vehicle's BEV unit and platform were jointly developed by Suzuki, Toyota, and Daihatsu Motor Corporation, leveraging each company's technological strengths.

The collaboration between these automotive giants traces back to 2016, when then-leaders Osamu Suzuki and Akio Toyoda initiated discussions on potential business partnerships. Their shared heritage in Shizuoka Prefecture's Enshu region, where both companies transitioned from loom manufacturing to automobile production, adds a historical dimension to their partnership.

The partnership has already yielded successful vehicle launches across multiple markets, including Japan, India, Europe, Africa, and the Middle East. This new BEV SUV is set for worldwide distribution, targeting the rapidly growing SUV market segment.

Suzuki President Toshihiro Suzuki emphasized the significance of supplying their first BEV to Toyota globally, noting that while maintaining competitive positions, both companies will continue collaborating towards achieving carbon neutrality.

Toyota President Koji Sato highlighted how this joint development of BEV technology would enhance their ability to offer diverse options for a carbon-neutral future, emphasizing the importance of learning from each other's strengths while maintaining healthy competition.

The two Japanese carmakers already have a global manufacturing alliance under which, in India, Maruti Suzuki supplies cars such as Baleno and Brezza to Toyota, which are then rebadged by the latter and sold as Toyota models. 

The model has proven to be quite successful for both Maruti Suzuki and Toyota, with sales to Toyota not contributing a substantial chunk to Maruti Suzuki's overall volumes in India.

This latest collaboration underscores both companies' commitment to advancing sustainable mobility solutions while addressing growing global demand for electric vehicles. It also marks a new chapter in their long-standing partnership.