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Introduction
Toyota has expressed a strong interest in expanding its product lineup by introducing its versions of Maruti Suzuki's highly acclaimed Jimny and Swift. This desire for collaboration is evident in their existing successful ventures where they have jointly worked on models such as Baleno and Glanza, Ertiga and Rumion, and Grand Vitara and Urban Cruiser Hyryder. Toyota thinks that its worth will rise by including these vintage cars in its range.
Suzuki's Firm Stance
Suzuki has taken a firm stance against Toyota's proposal emphasizing the pivotal role that Jimny and Swift play in defining the Suzuki brand. Suzuki believes that allowing Toyota to badge engineer these models could compromise their iconic status. Despite Toyota expressing interest in a collaborative approach, Suzuki has gracefully declined, maintaining the exclusivity of these models within its own brand identity.
Toyota's Motivation and Suzuki's Response
Toyota's motivation in seeking its versions of the Jimny and Swift stems from strategic market considerations. For example, the Jimny, if rebranded with a Toyota badge, could potentially offer a more cost-effective 4x4 alternative to Toyota's higher-priced Fortuner. However, Suzuki has responded by emphasizing that these models are not to be shared for the sake of increasing sales volumes alone. Suzuki remains steadfast in its commitment to preserving the distinctiveness of these core models within its brand DNA.
Sales Considerations and Suzuki's Stand
Despite a recent decline in Jimny sales after an initial surge, with only 15,476 units sold in the June-November 2023 period and a further drop to 1,020 units in November, Suzuki remains unwavering in its decision not to share these models with Toyota. Suzuki draws a parallel, stating that proposing badge engineering for the Jimny is akin to requesting a similar treatment for Toyota's Land Cruiser – models that hold a special place in their respective brand narratives.
The Swift's Popularity and Toyota's Strategy
The highly popular and iconic Swift, consistently achieving sales of over 17,100 units monthly, has also been deemed off the sharing table by Suzuki. Toyota, which has primarily retailed Maruti Suzuki's premium Nexa products under its brand, is keen on acquiring the Swift to potentially boost its sales. Suzuki is adamant about maintaining the exclusivity of these vehicles, highlighting their importance for brand recognition and market presence.
Successful Partnership and Future Collaborations
The existing partnership between Toyota and Maruti Suzuki in India has proven successful, leveraging economies of scale through low-investment badge engineering initiatives. Both businesses have noticed a discernible increase in revenue and the capacity to diversify into new markets with their product offerings as a result of this cooperative approach. In order to support the continuous expansion of the cooperation, Maruti Suzuki will contribute to the production of electric vehicles for the global markets of both Toyota and Suzuki in addition to standard models. The two automotive behemoths' solid and positive relationships are demonstrated by their ongoing cooperation, which is positive for their upcoming joint ventures.