Both companies hope to leverage on each other's core expertise to grow their businesses. Toyota's strength lies in electrification technologies while Suzuki's is in technologies for compact vehicles.
Among areas both companies are exploring are the sharing of Toyota's hybrid system with Suzuki especially for cars sold in India. Toyota could also be an OEM supplier of new electrified vehicles built on Toyota platforms (RAV4, Corolla Wagon) to Suzuki in Europe.
Suzuki could offer to share its compact vehicles and powertrains and help Toyota make inroads into India by being an OEM supplier of compact vehicles built on Suzuki platforms (Ciaz and Ertiga) to Toyota.
Toyota and Suzuki signed a memorandum of understanding to form a partnership on Feb 6, 2017.
While both car makers would collaborate in some areas, it does not stop them from competing fairly and freely against each other, Toyota said in a statement.
"Hybrid technologies are seen as playing a huge role in many markets," said Toyota president Akio Toyoda.
"Through our new agreement, we look forward to the wider use of hybrid technologies, not only in India and Europe, but around the world. At the same time, we believe that the expansion of our business partnership with Suzuki — from the mutual supply of vehicles and powertrains to the domains of development and production — will help give us the competitive edge we will need to survive this once-in-a-century period of profound transformation.
"We intend to strengthen the competitiveness of both our companies by applying our strong points and learning from each other."
> Video clip below is dated Oct 12, 2016 and reveals early stages of Toyota-Suzuki partnership.