Toyota to manufacture Suzuki Baleno in its Bengaluru plant to utilize the unused capacity.

22 September 2018_campuscad

Suzuki

Toyota Kirloskar Motor Pvt Ltd Bengaluru unit is currently studying the feasibility of producing the Suzuki Baleno in its second plant which is underutilized.

The capacity of the plant is to produce 3 lakhs units yearly but currently half of the units of Toyota Liva and Etios are manufactured.

Both the Japanese automakers made the headlines earlier to collaborate on new hybrid electric vehicles development and producing the models of each other’s under their own branding.  

Toyota will getting Sport utility Vehicle Brezza and premium cross hatchback Baleno from Suzuki and rebadged models will be sell under Toyota brand through its own dealership network. Suzuki will get the access to Corolla sedan and sell under Suzuki title.

In India Suzuki has market share of more than 51% where Toyota is having around 5%. Cross-badging will help both the automakers to gain market share and technology exchange.

Suzuki investing $1 billion (INR 7000 Crore) into Toyota plant

Maruti Suzuki has 3 plants in India (Gurgaon and Manesar) and fourth will be Toyota’s Bengaluru plant located at Bidadi. To refurbish the underutilized factory and to run full fledged production, Suzuki making significant investment into Toyota.

India is Suzuki’s largest market as it is already exited from world’s largest auto market China last month amid low sell and fierce local automotive competitor.

Suzuki aims to produce 2.5 million (25 lakhs) units per year by 2030 and its revamping its supply chain, vendor management and production capacity.

Suzuki and Toyota also visiting manufacturing plants of each others to check the quality and production feasibility.

Soon we will be able to see Toyota Brezza and Suzuki Corolla.

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