Japanese automakers Toyota and Suzuki announced on Wednesday that they reached an agreement on a capital alliance.
The two companies said that they agreed to establish and promote a long-term partnership toward collaboration in new fields including autonomous driving. The companies agreed to the plan at respective board meetings, reported state broadcaster NHK.
Toyota will acquire a stake of about five per cent in Suzuki for nearly 900 million dollars. Suzuki will put about 450 million dollars of its own money into Toyota.
The move will expand on a business tie-up between the firms that began in early 2017. Under that deal, Toyota shares its hybrid vehicle technology with Suzuki.
The firms also sell each other's cars in India, where Suzuki has a strong presence. The latest development comes amid big changes in the auto industry.
Artificial intelligence is playing an increasingly important role. Manufacturers see AI as key to self-driving cars and other next-generation vehicles, said NHK.
Disclaimer: No Business Standard Journalist was involved in creation of this content