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Thursday, November 01, 2007

Toyota Maruti Suzuki

What if Toyota buys a stake in Suzuki.It would help leapfrog Toyota sales not only in India and a couple other markets but also give it a comfortable lead over its rival GM in the race to be number one.Considering the slowdown in many markets and also increasing gas prices we are not very far away from the day when a number of vehicle manufacturers do merge in the future.

Toyota would not have to worry about manufacturing a $3000 car for India and instead it could focus on bigger and more luxurious vehicles just like it is doing now.Suzuki would be a gainer as well with the Toyota backing people would start taking Suzuki cars more seriously in established markets.

Suzuki[automobiles] would be the perfect partner for Toyota.Suzuki enjoys a very healthy market share in emerging markets and is a profitable venture.Its compact vehicles now seem to be accepted in many markets.Its production system too follows the japanese lean production methods.

But then there are a number of problems too for such a patnership,what happens to Daihatsu.Then there is the Suzuki angle as well,they may want to go it on their own.Then there is Nissan who have smartly signed a deal with Maruti.

It sure would be a shortcut to establish itself as number one but then Toyota does not like taking shortcuts does it.

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