Maruti Suzuki India (MSI) on Wednesday said its board has approved supply of a derivative of compact SUV Vitara Brezza to Toyota Kirloskar Motor which will then sell the vehicle under its own brand name.
This will result in incremental sales for the company, MSI said in a regulatory filing.
Toyota and Suzuki had executed a memorandum of understanding on February 6, 2017 to beginconcrete examination towards realisation of business partnership in areas including environmentaltechnologies, safety technologies, information technologies, and mutual supply of products and components.
In pursuance to the same, in March last year, MSI board approved the supply of a product derivative of Baleno to Toyota Kirloskar, which currently sells the product as Glanza.
In March 2018, Toyota and Suzuki concluded a basic agreement for supplying hybrid and other vehicles to each other in the Indian market.
As per the agreement, Suzuki were to supply premium hatchback Baleno and Vitara Brezza to Toyota, while Toyota had to provide Corolla sedan to Suzuki.
In a separate filing, the company said its board has approved acquisitionof 39.13 per cent stake from Sumitomo Corporation, Japan and 10 per cent stake from Sumitomo Corporation India held in J.J Impex (Delhi) Pvt Ltd.