India was Toyota's Top Incentive for Alliance with Suzuki

Last week we reported that Toyota and Suzuki are forming an alliance to share technology and small-car platforms between the two companies. The deal, however, looked great for Suzuki but with not much in it for Toyota. Today brings some clarity to the arrangement. 

India is currently the 4th largest new car market and is expected to leapfrog Japan to number 3 in the near future.  Being such a large and growing market has outsiders clamoring to get in, but one company is already there in a big way.  Suzuki's local subsidiary Maruti accounts for 46 percent of the sub-contienent's new-vehicle sales.  We reported earlier that Suzuki agreed to provide Toyota with two compact vehicles to sell in India and will produce one of its SUVs in a Toyota factory in India. 

Toyota has taken a rather hands-off approach to the companies it buys a stake in. Subaru, Mazda, Daihatsu all enjoy relative autonomy from the Toyota juggernaut. The same remains to be seen with this tie up with Suzuki.