Toyota and Maruti Suzuki, both hail from the land of innovation, Japan. But what has led to one being the most prominent brand of automobile in India and the other one to shut down and handover one plant to its counterpart from the same country? If rumours are to be believed, Toyota Kirloskar Motor India is going to say adios to one of its two plants at Bidadi which will be operated by Maruti Suzuki.

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  • The year 2019 saw great distress in the automobile industry. An industry which saw no degrowth in previous decades was at knees in the unlucky year. Many plants were shut down for long periods. Toyota was no exception. In the month of December, there was a sales dip of around 38% as compared to the same month in 2018.

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  • This may be the reason for one of the Bidadi plant of Toyota will be handover to Maruti Suzuki. Maruti Suzuki has also faced the slump but was quick to revive, thanks to the brand name which is still the most loved brand in India.
  • The shifting of ownership of the plant can also be due to the Toyota partnership  with Maruti which includes a basic agreement of supplying hybrid and few other cars to each other.
Toyota Glanza | Maruti Suzuki Baleno
Toyota Glanza | Maruti Suzuki Baleno
  • It was reported earlier that Maruti Suzuki will be investing over $1 billion in Toyota’s manufacturing unit. This investment is expected to be aimed to refurbish the facility and configure the production lines in order to be used for the production of Maruti Suzuki’s models. It is also expected to use the idle capacity of 1.5 lakh units per annum in order to match the demand of the Indian customers which is not in use by Toyota due to less demand.

Indians love Maruti Suzuki: Car Sales Report December 2019 | Maruti is Unbeatable!

The popularity of Toyota can only be expected to increase though there is stiff competition from the new-to-India automakers such as MG Motor and Kia Motor. Toyota has always offered robust cars but Indians seem to oversee the fact of safety features and only focus on the mileage. Let’s see if this changes in future.

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