Maruti Suzuki is going to invest $1 billion (INR 7,000 crores) in Toyota’s facility based in Bangaluru. Baleno and Brezza manufacturing to utilize the latter’s plant capacity.
According to a number of recent media reports, it is likely that soon Maruti Suzuki will be manufacturing some of its cars at Toyota’s plant located near Bangaluru.
Maruti’s cars which are said to be manufactured at the said Toyota plant will include the Baleno hatchback and the Vitara Brezza sub-compact SUV.
Maruti Suzuki is said to invest $1 billion in Toyota’s Bangaluru plant located in Bidadi.
Production of Maruti Suzuki’s cars like the Baleno and the Vitara Brezza will help the Indo-Japanese automaker ease the pressure on its own plants which are currently running at full capacity to meet the overwhelming demand.
Not only this, but the investment and the subsequent production of Maruti’s cars will help Toyota utilize the complete production capacity of its manufacturing facility. The Japanese automaker’s Bidadi plant is currently running at only 30 per cent of its total capacity. There it produces its cars like the Etios, Liva, Yaris as well as the Camry Hybrid.
Suzuki and Toyota went into a partnership last year under which both the company’s will be sharing vehicles to be rebadged and sold under the other’s brand name.
Under this partnership, Maruti Suzuki will be provided Toyota with the Baleno hatchback and the Vitara Brezza sub-compact SUV. While Toyota will provide Maruti with its Corolla Altis executive sedan.
It will help both the manufacturers’ target segments in which they currently have no presence at all. The rebadged vehicles will be sold through the respective automaker’s dealerships outlets separately.
Media reports state that executives from both the companies have visited each other’s plants to see the operations and to perform quality checks and feasibility studies. Same was done with the vendors as well.
In addition to exchanging vehicles, Maruti Suzuki and Toyota will also work together for the development of electric and hybrid powertrains in India. Maruti Suzuki has already commenced its development on the same and has confirmed that it will launch its first all-electric car in India during the year 2020.
The Maruti Baleno and the Vitara Brezza have been the leaders in their respective segments. These cars rebadged as Toyota models will help the company tap into the immense potential that India has in compact segment cars. So far, Toyota has not been able to target this segment with the company management accepting the same boldly.