In February 2017 a mutual supply arrangement of vehicles was announced between Indian auto maker Maruti Suzuki and Toyota. The agreement mentions the supply of the Baleno and Brezza from Maruti’s side and Corolla from Toyota’s side. Looking at the figures and the current scenario, Toyota would gain from welcoming the Baleno and Brezza at their showrooms, these cars would obviously be sold after minor modifications and rebranding.
Right now, the upper hand seems to be with Toyota if we consider the sales of the cars mentioned in this agreement; as Baleno and Brezza combined average sale amount to 28k units monthly, compared to the average sale of a mere 400 units per month arising from Corolla.
On the other hand, Maruti will use the Corolla to enhance its efforts of upgrading the Nexa brand as a premium vertical of the automaker. The arrangement has saved Toyota capital needed to start making a hatch and compact SUV from scratch.
This seems to be something to look forward to when it comes to share in sales by each company.
Will Toyota pull off with rebranding and modifying the hot sellers of Maruti?
Or will Maruti conquer the sedan segment with the rebranded Corolla?
Let’s wait and watch, drop your thoughts down in the comment section and let us know what you think of this new partnership.