Toyota and Maruti will bring joint premium SUV; Compete with Hyundai Creta and Kia Seltos:

This will be the first time that a Maruti car will be manufactured in Toyota’s factory in India. There have been reports in the past that both Japanese companies are preparing to compete with Korean companies in India.

Together, both the companies are trying to challenge the Hyundai Creta and Kia Seltos and are going to bring new premium SUVs. At the same time, now both the companies will together increase the portfolio of green vehicles in India, which will include hybrid and electric cars.

According to news reports, the SUV segment is becoming increasingly popular in India these days. Maruti and Toyota are already present in the subcompact segment. While Maruti’s subcompact comes in the market as Vitara Brezza, Toyota rebadges and sells the same SUV as Toyota Urban Cruiser. At the same time, now both the companies are working on a new premium SUV.

Reports say that the work on this SUV is going on for the last one year, with the research and development teams of both the companies working together on matters related to product development, design and engineering. It is expected that the new SUV will be launched in the market in the second half of next year.

According to reports, both the companies have started aggressively on this project after the announcement of Production Linked Incentive (PLI Scheme) of Rs 26,000 crore by the Government of India. This scheme has been launched to promote electrics and hydrogen fuel sales vehicles.

Earlier both the companies were planning to focus on hybrid and electrified versions, which will run on both battery and petrol. But now the focus of both the companies will be around pure electricals and fuel sales. However, discussions are still on on this and a final decision is yet to be taken.


Talking about the premium SUV, at present, an estimated investment of Rs 1000 crore has been fixed to develop this vehicle. In view of this ambitious project, both the companies have come together for the first time.

This premium SUV will be built on the common platform, but Toyota and Maruti will do different styling according to their needs. This will be Maruti’s first car to be manufactured at Toyota’s Plant 2 in Bangalore, where Toyota used to manufacture the Yaris sedan, which has now been discontinued in India. Toyota and Maruti had entered into a cross badging agreement in 2018, under which both the companies would rebadge each other’s selected models and sell them from their showrooms.

As part of the agreement, Urban Cruiser’s Toyota is rebadging the Baleno and selling it under the Glanza name. At the same time, Toyota is preparing to sell the sedan car Ciaz and MPV Ertiga, which will be sold under the name Toyota Rumion.

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