Toyota, Suzuki Alliance Confirmed for India

Suzuki Motor Corp. and Toyota Motor Corp. told India’s prime minister they will collaborate to develop manufacturing in the country and bolster India as an export base.

The two companies revealed initial talks about such an agreement in February. Prime Minister Narendra Modi says the partnership will marry Toyota’s knowledge in technology and manufacturing with Suzuki’s expertise in small-car development and production. Maruti Suzuki India Ltd. controls nearly 50% of the Indian car market.

The alliance coincides with a similar agreement between Tata Motors Ltd. and Volkswagen AG announced today. Both alliances are in response to India’s “Make in India” initiative, which is encouraging foreign investment and fostering a stronger domestic supply base for India’s auto industry.