Late last month, Suzuki and Toyota revealed details of their partnership, which includes cross-branding of multiple products across segments for the Indian market. A recent report by ET Auto sheds light on the pricing strategy Toyota is likely to adopt.
Speaking to ET Auto, N Raja, Director & Senior Vice President (Sales & Marketing) Toyota Kirloskar Motor, said:
Though it’s too early to speak in a concrete manner, I feel that we need to match Maruti on the pricing front when we will start selling the Brezza and Baleno under our branding. That is the aspiration and the wish.
As part of the deal, Toyota will borrow the Maruti Baleno and Maruti Vitara Brezza from MSIL. Both vehicles are the leaders in their respective segments, and matching their sales will not be possible unless their Toyota badged versions are priced competitively. It will be a "critical area" for Toyota admits Raja and one that will determine the extent of success of the Toyota-Suzuki partnership. According to reports, Toyota will source about 50,000 units of the Baleno and Vitara Brezza from Suzuki.
Maruti Suzuki, on the other hand, will be selling the Toyota Corolla Altis under their brand name through the NEXA channel. It will be interesting to see how MSIL positions the product in relation to the Toyota. 10,000 units of the sedan will be supplied to Suzuki in India annually.
[source - ET Auto]