Toyota And Suzuki’s Pairing In India Is Shifting Their Trajectories
In India, Suzuki operates through Maruti Suzuki, where it holds about 58.3% stake. Meanwhile, Toyota runs the show through its local arm, Toyota Kirloskar Motor (TKM).
Japanese automaker Toyota entered in India in a joint venture with the Kirloskar group in 1997, launching the Toyota Qualis in 2000. They came in with global experience and big ambition. Maruti, meanwhile, was already a household name. At the time, buying an entry-level car was almost synonymous with buying a Maruti.
For decades, the two brands have carved out different paths in the same country, one dominating the small car and affordable segment with a lion’s share of the market, and the other catering to the premium end, starting with the Qualis and now best known for the Innova and Fortuner.
What began as different trajectories has now converged into a partnership in India’s changing automotive landscape.
Toyota Motor sold 10.8 million vehicles in 2024, topping global sales for the fifth straight year. But while Toyota once lagged in India, the ongoing Toyota–Suzuki global alliance is quietly proving that in the race toward the future of mobility, teaming up beats doing it alone.
How It All Began
The global collaboration goes back to 2016, when the top bosses, the late Osamu Suzuki and Akio Toyoda, initiated discussions about joining forces-- a move aimed at steering through disruption and building on each other’s strengths for sustainable growth.
“We are aware that the future is full of risks,” Suzuki had said at a joint news conference with Toyoda then. A year later, they made it official with a memorandum of understanding for a business alliance.
Since then, the relationship has only gotten deeper as it was tested, tweaked, and expanded into new areas. But the real ‘it’s getting serious’ moment came in 2019, when the two giants put some real skin in the game with an equity investment in each other. That’s when industry watchers became quite sure of a certain future.
The alliance plays across several big markets, including India, Europe, Africa, Japan, and the Middle East, but the biggest wins have shown up in India. That’s where the partnership has really flexed its muscles, giving both companies a serious edge in one of the world’s most competitive and fast-changing auto markets.
In India, Suzuki operates through Maruti Suzuki, where it holds about 58.3% stake. And India isn’t just another market for Suzuki, it’s the biggest. The country accounted for over 61% of Suzuki’s total output and 57% of global sales last year. Meanwhile, Toyota runs the show through its local arm, Toyota Kirloskar Motor (TKM), and India has quietly climbed the ranks to become Toyota’s third-largest market outside Japan, after the US and China.
Together, the two have struck a sweet deal where Suzuki brings the market muscle, while Toyota brings the tech and strategy game.
A Tilt In Toyota’s Favour?
If you look at the India story, it’s easy to think Toyota is getting the better end of the deal. The company once tried to crack the mass-market code with the Etios, Liva and Yaris. But these models did not stick. Fast forward to today, and things look very different for the carmaker.
Through vehicle rebadging-- where one company sells a model developed by the other with only minor cosmetic changes like the logo, grille, bumper-- Toyota is tapping into Suzuki’s expertise in compact car design. The lineup of four rebadged models, including the Glanza (based on Maruti Suzuki Baleno), Urban Cruiser Taisor (Fronx), Urban Cruiser Hyryder (Grand Vitara), and Rumion (Ertiga), contributed about 55% to Toyota’s total sales in India during H1 FY26, up from 53% in FY25 and 44% in FY24.
This smart badge engineering lets Toyota tap into cost-effective, high-volume models without diving headfirst into what would otherwise be a capital-intensive exercise. Interestingly, it hasn’t eaten into sales of Maruti’s respective models, likely because of an internal agreement that caps how many cars can be supplied to Toyota.
“This strategy has allowed Toyota to enter previously inaccessible segments,” Ammar Master, former director of South Asia- Automotive at GlobalData, told The Core.
Thanks to the partnership, Toyota’s market share has jumped from a mere 3% in FY21 to around 8% in FY25, and its factory utilisation has gone up significantly, moving it beyond the larger vehicles tag and giving it real street cred in India’s fiercely competitive car scene. The company’s factories are running all three shifts. That extra third shift alone adds roughly 32,000 units a year, bringing total production across its two Bidadi, Bengaluru plants to about 4.4 lakh units annually. The dealer viability has also improved over the past years.
“With portfolio expansion, Toyota dealers deliver much higher profitability compared to market standards,” Amit Kaushik, former managing director at Urban Science India told The Core.
The collaboration is also letting Toyota enter categories where it did not exist before, especially the Rs 15 lakh to Rs 30 lakh range that is expected to continue to drive the consumer demand.
"At Toyota Kirloskar Motor, we place great emphasis on our inherent strengths and values of the Toyota brand which is customer centricity. While we collaborate with Maruti Suzuki as part of a broader alliance to promote sustainable mobility and localisation, each brand continues to operate independently with its own design philosophy, product positioning, and customer experience approach," a company spokesperson told The Core.
Toyota’s Indian arm closed FY25 with a record-breaking performance, posting a consolidated net profit of Rs 5,672 crore, that’s up 18.5% from Rs 4,787 crore in FY24. This was the most profitable year in its 25-year history in India, with margins that still rank among the best in the industry.
“The collaboration has not only boosted Toyota’s market share in India but has also eaten into Maruti’s share. The latter has struggled to defend its position even as Toyota has expanded in the domestic market,” Gaurav Vangaal, associate director for production forecasting at S&P Global Automotive, told The Core.
So, What's In It For Suzuki?
Early on, Suzuki was pretty clear about why it teamed up-- making competitive cars was getting cost-intensive, and having a partner in Toyota was a smart way to share the load.
Analysts suggest the tie-up has also helped Maruti Suzuki meet strict CAFE (Corporate Average Fuel Efficiency) norms in India and pivot beyond petrol, even as it phased out diesel vehicles.
According to Master, Suzuki scores big from Toyota’s tech muscle. From strong hybrid systems and safety features to connected car tech, access to Toyota’s R&D lets Suzuki speed up electrified vehicle development and stay ahead on regulatory compliance. On top of that, being associated with Toyota boosts Suzuki’s global credibility, helping the brand expand beyond its traditional markets.
Suzuki has next to no footprint in the US and China and a limited presence in Europe. In India, Maruti Suzuki still wears the crown as the top carmaker, but its shine has dimmed a bit over the past few years. Its market share has slipped from a commanding 50% pre-pandemic to around 38% today. Why? A mix of things. Tougher regulatory norms drove up costs for its bread-and-butter small cars, buyers eyeing bigger cars and SUVs, and Maruti’s slow pivot to that segment didn’t help either. Add it all up, and even the market leader hasn’t been immune to the shifting gears of India’s auto scene. In the near term, the recent GST cut is set to give Maruti’s small cars a sales boost.
Domestic sales might not be breaking records, but overall, Maruti is still raking it in. According to Vangaal, the company benefits by using its production lines to build Toyota vehicles, which are also exported to global markets. It’s a win-win as Maruti gains international reach and a steady revenue stream, while Toyota gets reliable production capacity.
Suzuki has rolled out its first electric SUV on the jointly developed eVX platform with Toyota and Daihatsu. The Maruti Suzuki e-Vitara, yet to be launched for the India market, is already exported to 12 countries, and will also be supplied to Toyota. While the two have teamed up on combustion and hybrid cars before, this will be their first EV offering.
In October, Maruti Suzuki chairman RC Bhargava said the exports business is contributing “significantly” to the profitability of the company, as “the arrangement with Suzuki and Toyota to export cars has worked very well.”
Through badge engineering, Maruti Suzuki’s Invicto is also built on the Toyota Innova Hycross platform, thereby tapping into the MPV category where Toyota has long held the advantage. Here, the sales ratio for both brands stands in the range of 1:12, as the latter continues to rule the category.
"Invicto defends premium retention funnel within Nexa, while Hycross extends hybrid leadership in the Rs 25–35 lakh band. The combined architecture has actually expanded the alliance’s coverage of the Rs 20–40 lakh ‘premium family mover’ segment, which has grown over 40% CAGR since FY22," Harshvardhan Sharma, Group Head- Automotive Tech & Innovation Group at Nomura said.
The interesting part? Both Maruti and Toyota have kept their popular models intact, making sure rebadging doesn’t play around brands like Innova, Fortuner, Swift, or even Jimny.
Avik Chattopadhyay, founder of brand consultancy firm Expereal, told The Core that the alliance will only get stronger in the coming years. “Years later, Suzuki may even end up like Daihatsu- a brand that’s part of Toyota but still maintains its own identity. Being under Toyota’s umbrella ensures it will never fade away,” he added.
In the EV space, however, it’s highly unlikely that cross-badging will work for Maruti Suzuki and Toyota. While Toyota’s technology will feature in both lineups, Maruti will want to retain its edge in cost efficiency, and Toyota will aim to bring distinct value to its models.
Driving Forward
Master termed the global alliance as a “symbiotic relationship”. However, going forward, even with all the perks, the partnership isn’t all smooth sailing. Fierce market competition, shifting consumer tastes, and internal brand dilution are just a few of the hurdles both companies have to be cautious about.
Sharma noted that one may expect more horizontal integration (shared R&D, common battery sourcing) and less vertical dependence (badge swaps).
In FY25, Toyota Kirloskar snapped up industrial land in Bidkin, Aurangabad, for a brand-new plant, part of its Rs 26,000 crore India investment plan. Add that to the third plant under construction in Bidadi, Karnataka, and TKM’s annual capacity will have room to scale all the way up to 1 million units- reflecting growing demand and portfolio expansion.
Vangaal is quite confident that Toyota will sustain its market share in India. However, to grow beyond this, he said the company will need to develop products specifically designed and researched for the domestic market, addressing local needs while offering advanced technology features for next-generation consumers.
While details on Toyota’s new product lineup for India are under wraps, Reuters reported last week that it aims to roll out 15 new and refreshed models by the end of the decade. The mix will include Toyota’s own cars, vehicles supplied by Suzuki, and upgraded versions of existing models, all while strengthening its presence in rural markets.
Last week, Suzuki Motor also announced its plans to launch eight new SUVs in India over the next five to six years, aiming to win back market share lost to rivals. President Toshihiro Suzuki said the company is targeting a rebound to around 50%, even as competition in India hits its toughest point since Suzuki began operating in India four decades ago.
Interestingly, some past tie-ups, namely Mahindra-Ford, Nissan-Ashok Leyland, didn’t exactly stand the test of time. Suzuki’s earlier alliance with the more technologically advanced Volkswagen AG and General Motors also ended bitterly. But, the Suzuki-Toyota alliance looks more promising; however, only time will tell if it thrives in the EV era. An industry veteran noted that with Toyota gaining strength and stability in India, it might eventually rely less on its alliance with Suzuki.
In contrast, Kaushik believes that in this global alliance, both partners complement each other, unlike other alliances where the intent was often to compete in the same segment as the partner. Maruti Suzuki is the 'big brother' in India, while Toyota Motor is the 'big brother' globally.
“Going forward, the partnership will continue to share platforms, with the segment focus remaining the same– Toyota strengthening its position in premium segments, and Maruti focusing on comparatively smaller vehicles,” he said.
Master said that the partnership is expected to become more integrated, driven by scale, technology, and adaptability. That said, if strategic goals shift, each company may refocus on core strengths, creating potential divergence.
The alliance stands out as one of the most instructive examples of strategic complementarity in India’s auto sector. According to Sharma, this evolution into a transformational synergy makes it a live case study in strategic adaptation amid industry disruption.
