Japan's Toyota Motor Corp (NYSE: TM) said on Friday it will further leverage its global partnership with Suzuki Motor Corp (OTC: SZKMY) to begin production of a new sports utility vehicle in India with hybrid capabilities.
What Happened: The new SUV, developed by Suzuki, will be built at a Toyota Kirloskar Motor Pvt Ltd plant, the Aichi-headquartered automaker's India plant it runs jointly with the Kirloskar Group.
Toyota and Suzuki started a partnership in 2016 and signed an agreement in 2019 to establish and promote long-term cooperation in new fields, including electric vehicle technology and autonomous driving.
The two companies, under a global partnership that covers their India subsidiaries, have been sharing cars using a cross-badging strategy.
The powertrains of the new SUV, which will go on sale in India, will be equipped with a mild-hybrid developed by Suzuki and a strong hybrid developed by Toyota.
See Also: Why Toyota Will Stick To Making Hybrid Cars Amid Growing Calls For EV Transition
What's Next?: While Toyota will build the new SUV, both Maruti Suzuki and TKM will market the new model in India as Suzuki and Toyota models.
The two automakers also plan to export the new model to markets outside India, including Africa.
Toyota, the world's largest automaker by sales, last week said that it would continue developing and making hybrid and other low-emission vehicles amid shareholder pressure to embrace electric cars.
The automaker has set a goal of selling 3.5 million EVs per year by 2030. For perspective, the legacy automaker sold 10.5 million vehicles last year.
Price Action: TM stock closed 1% lower at $157.5 on Thursday, according to data from Benzinga Pro.