Japanese carmakers Toyota and Suzuki have formed a long-term capital alliance by cross investing in each other.
Toyota will now acquire a 4.96% share in Maruti valued at $908 million while Maruti will invest $454 million in Toyota.
Both the companies will collaborate to develop new technologies including electric and autonomous vehicles. Maruti, using Toyota’s technical guidance and facilities, is already testing around 50 electric vehicles in India.
Both the companies announced a cross-badging deal in India a couple of years ago. Under this deal Toyota has been selling multiple premium Maruti cars, with some modifications, under its branding and Maruti in return is getting the knowledge to develop hybrid and electric cars.