Toyota manufacturer deals
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Under the cross-branding arrangement, Suzuki will supply Toyota two of its best-selling vehicles — Baleno and Brezza — for Indian market. Toyota will supply its executive sedan Corolla in return.
The arrangement enables Maruti to gain marketing insight from selling a sedan like Corolla with investment in product development and capital expenditure. With more localisation of Corolla, Maruti could potentially lower the price of the vehicle and gain incremental volumes in high-margin executive sedan segment with sales volume of 1, units a month. Baleno and Brezza sell more than 30, units per month.
TOKYO (1 p.m.)
Maruti sold more than , units of these two cars in the eleven months of FY18 and they have a waiting period of weeks. Baleno and Brezza together account for 11 per cent of total passenger vehicle volume in India.
Given that Maruti has one of the best cost structures, thanks to its scale and high quantum of localisation, its brands for Toyota will be more competitively priced against what Toyota would have managed on its own.