Next-gen Toyota Innova Could be More Affordable Due to Maruti Influence

It is a fairly well-known piece of information that Suzuki Motor Corp and Toyota Motor Corp have joined hands to consolidate their position in the Indian market. In a recent development, it has come to light that the two companies are exploring partnership beyond vehicle development and sharing. The duo could practice joint sourcing of components in order to cut down on costs.

Seen above- Modified Toyota Innova Crysta with Lexus-inspired body kit.

See Also - Toyota-branded Maruti Vitara Brezza to launch next month

As a part of this, Toyota Kirloskar Motor Pvt Ltd could tie up with several suppliers of Maruti Suzuki India Ltd in order to source parts of its new models, such as the next-gen Toyota Innova Crysta, at competitive rates. It’s noteworthy here that the replacement for the popular Multi-Purpose Vehicle could be introduced as soon as in 2022.

Maruti Suzuki, which has an expertise in low-cost production, can surely offer a tip or two to Toyota Kirloskar Motor on curbing manufacturing costs. In fact, it is being said that TKM has already decided to discontinue services of some of its vendors and work with suppliers of Maruti instead. In due course of time, many Maruti suppliers are bound to be added to the TKM’s vendor base.  

It may be noted here that Toyota and Suzuki decided to come together in 2017 for development of affordable hybrid and electric vehicles for the local car market. The duo also agreed to sell each other’s products and the Glanza, which is a rebadged Maruti Baleno, became the first product of this cross-retailing exercise. The next Maruti model that will be sold by TKM is the recently updated Vitara Brezza.

Vikram Kirloskar, vice-chairman, Toyota Kirloskar, has reported said that his company is “trying to learn how Maruti produces and how they can make in such high volumes at such reasonable prices and how well they purchase and all. They are also looking at our systems as well. How can we make such a big reliable car."

Toyota Vitara Brezza is the second rebadged model to be launched under Toyota-Maruti partnership

Also read - Baleno-based Toyota Glanza to Become Cheapest Toyota Car in India

Speaking on the Toyota’s plans, a source close to the development has said, “They have been talking to some of the Maruti vendors for certain parts which were usually sourced from Toyota’s own vendor network. If the Maruti suppliers can provide the parts at a lower cost, the company plans to go ahead with the. This is the way both companies are trying to build synergy in the back-end, since they may not be able to do it directly due to anti-competition laws".

Source