New Delhi: The automotive landscape is witnessing significant shifts, particularly with the evolving partnership between Suzuki Motor Corporation and Toyota Motor Corporation in India. Their global strategic collaboration, which includes co-development, rebadging, and a focus on advanced innovation and technology, has sparked both positive and critical discussions within the market.
While the partnership between Toyota and Maruti Suzuki is considered mutually beneficial, some critics argue that it could potentially dilute Toyota's brand identity. Rebadged models like the Toyota Glanza, Urban Cruiser Hyryder, and Taisor, based on Maruti’s Baleno, Grand Vitara, and Fronx, may not meet the premium expectations of Toyota loyalists, raising concerns about the long-term impact on Toyota's brand image.
Brand Perception and Market Strategy
Harish Bijoor, Business & Brand Strategy Specialist and Founder of Harish Bijoor Consults Inc., emphasizes the need for Toyota to strengthen its brand communication. He notes that the brand currently lacks a distinctive position in the Indian market and needs to invest in a strong brand positioning strategy to stand out. Bijoor suggests that Toyota should delve deeper into innovation, offering top-tier products that appeal to high-end consumers and even cater to consumer fantasies across different segments. He believes that Toyota needs to invest in market-specific research to customize its offerings for the Indian context and establish a dominant presence in one specialized area.
Umesh Bopche, CEO of Experience Commerce & CYLNDR India, remarks that Toyota has traditionally been seen as an aspirational brand known for its high quality and innovation, with flagship models like the Fortuner and Innova setting benchmarks. However, he argues that the collaboration with Maruti Suzuki, which is known for affordability, has diluted Toyota’s unique identity. Bopche suggests that the rebadged vehicles lack a distinctive value proposition, leading consumers to prefer brands that offer unique features and emphasize individuality and innovation.
Consumer Perspectives
Inderjit Singh Sokhi, a Maruti Suzuki SX4 owner and car enthusiast from Mumbai, points out the confusion caused by the collaboration. He notes that while Toyota has been known for reliable and high-value cars like the Innova Crysta, today's consumers prioritize tech features, even at the expense of higher maintenance costs and lower mileage. Sokhi believes that Toyota should leverage its technological edge, as demonstrated by innovations like the Prius, and consider introducing high-end models under a sub-brand to maintain its premium image.
Arjit Sharma, an advocate and Mahindra Thar owner from Delhi, shares his disappointment with the rebranded Toyota models, which he feels lack the quality that once defined the brand. Sharma recalls the excitement around the launch of the Innova and hopes that Toyota will reclaim its legacy by offering vehicles that reflect the quality and reliability that originally made it special.
Conversely, Tejas Mehta, a new Toyota Glanza owner from Mumbai, appreciates Toyota for its trusted service and quality. He believes that Toyota will always stand for trust, innovation, and quality, regardless of its partnerships, and that the Glanza offers a more stable driving experience compared to the Baleno.
Strategic Advantages
Ammar Master, Director (South Asia) Automotive at GlobalData, highlights the strategic benefits of Toyota's partnership with Suzuki in India. This collaboration has enabled Toyota to leverage Maruti Suzuki's expertise in developing smaller vehicles, aligning product offerings with local market demands. The rebadging strategy has allowed Toyota to expand its portfolio efficiently, introducing new models at reduced costs and shorter development times, thus appealing to a broader customer base.
Master also notes Toyota’s long-term vision, which includes the introduction of THS (Toyota’s Hybrid System) technology and planned BEV (Battery Electric Vehicle) models. These initiatives demonstrate Toyota’s commitment to remaining at the forefront of technology and innovation, likely solidifying its market position and driving future growth in India.
Adapting to Market Evolution
VG Ramakrishnan, Managing Partner at Avanteum Advisors LLP, observes that Toyota's strategy is focused on sustainability and market reshaping, particularly in states like Uttar Pradesh and Karnataka. By making hybrids more affordable with the support of government policies, Toyota is channeling resources into strategic market positioning rather than heavy branding. Ramakrishnan suggests that while traditional Toyota loyalists might feel dissatisfied with the shift, a new wave of consumers aligns with the brand's evolving focus on innovation and sustainability.
Long-Term Vision
Toyota's current strategy is geared towards green, tech-forward mobility, positioning itself for long-term success in India's evolving automotive landscape. By prioritizing technology, Toyota aims to disrupt the market in the future, even if it currently lacks the "wow" factor in terms of aspirational branding. This forward-thinking approach is expected to cause significant market disruption, much to the concern of its competitors.
Today, approximately 46% of Toyota Kirloskar Motor's sales come from Maruti Suzuki rebadged models, with a market share of 6% in India for FY24, according to SIAM data. Toyota's focus on sustainability, innovation, and strategic partnerships is reshaping its brand identity and market presence in India, paving the way for future growth and success.
Also Read: Best Lightweight Bikes in India: Top Choices for Easy and Comfortable Rides
