The Japanese automaker, Toyota is acquiring a 5% stake in Suzuki Motors. The automotive industry in Pakistan, and internationally is undergoing a change with new environmental policies, driverless cars, new auto companies entering the market, etc. In this transforming auto environment, Toyota has decided to acquire stakes in Suzuki.
After paying 96 billion yen, Toyota Motors will acquire 4.94% stakes in Suzuki. Also, Suzuki will pay 48 billion yen to acquire 0.2% of Toyota. It was back in 2017 that both these companies signed a memorandum of understanding to discuss this collaboration.
Internationally, the auto industry is changing with stronger environmental policies along with the development of driverless vehicles. In this scenario, Toyota has acquired stakes in Suzuki. The companies issued a joint statement in which they said that the factors mentioned above created a turning point unprecedented in both scope and scale” for the market.
They have partnered up to navigate “this transitional era” and explore new arenas including autonomous vehicles.
The statement issued by the companies said, “The two companies intend to achieve sustainable growth by overcoming new challenges surrounding the automobile sector by building and deepening cooperative relationships in new fields while continuing to be competitors, in addition to strengthening the technologies and products in which each company specializes and their existing business foundation.”
Toyota is one of the leading automakers in the world while Suzuki has a stronghold in the Indian market, thus it is anticipated that their collaboration will be beneficial for them and the people in general.