Toyota Suzuki cross-badged models prices to be competitive, both automakers will end up in a fierce battle.
Toyota and Suzuki concluded a basic agreement towards mutual supply of hybrid and other vehicles between the two companies for the Asian passenger car market. Maruti will supply the Baleno premium hatchback and the Vitara Brezza sub-compact SUV to Toyota while getting access to the Corolla sedan. The first of the shared models is expected to be launched in the second quarter of 2019.
This very tie-up for cross-badging of cars is set to result in a furious fight between the two Japanese automakers. Toyota will start selling its version of the Baleno and Brezza from next year and is aiming to maintain the prices of the cars at a similar level even while giving them a new distinctive looking front end and revised interior. Teams from both the companies have started to work on various aspects related to the cross-badging deal.
Toyota hasn’t been quite successful in the small car segment and with this partnership with Suzuki, the former intends to change just that. The carmaker is looking at a larger play in one of the world’s most competitive car markets and aims to increase its customer base by entering into the premium hatchback and sub-compact SUV segment. However, there are critical challenges to this deal. First is to get proper differentiation in the products and second is to get the price at par with Maruti. However, what worries Toyota the most is the part of getting proper differentiation as previous attempts at cross-badging by other carmakers have not been very successful in Asia. For instance, the Nissan Terrano (based on Renault Duster) and Renault Scala (based on Nissan Sunny) were not successful in the market.
Toyota Suzuki Cross-Badged Models Prices
– Toyota Suzuki announced the cross-badging deal on 29th March 2018
– Toyota is aiming to match the prices of its products with Maruti
– Asia launch of the Toyota Brezza and Baleno in 2019