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Toyota and Suzuki announced Wednesday that they have signed a capital cooperation agreement, Kyodo news agency reported. Toyota will acquire about 4.9% of Suzuki for about 96 billion yen (6.5 billion yuan), and Suzuki will also buy about 48 billion yen of Toyota shares. It is said that the two sides will accelerate the development of new technologies and devote themselves to the joint research of self-driving technology.

This cooperation may enable both sides to quickly adapt to the comprehensive changes in the automotive industry, form advantages in the development of new technologies, and reduce costs. In fact, Toyota and Suzuki announced plans for a partnership earlier.

On March 20, 2019, Toyota and Suzuki jointly said they planned to produce electric cars and compact cars for each other in order to better cope with the rapid changes in global automotive technology.

The two car companies will play a role in their own advantages. Suzuki is small overall, but dominates the fast-growing Indian market and focuses on small and economical cars, while Toyota has been involved in hybrid technology for years and is investing more in self-driving. it also occupies a large share of the global market. The cooperation between the two sides will form the complementarity of technology and market.

Suzuki said that under the March agreement, Suzuki will purchase gasoline hybrid systems from Toyota for global sales, while Suzuki will produce two compact cars for Toyota in India based on the Ciaz and Ertiga models. Toyota, for its part, said further cooperation with Suzuki would help Toyota expand its business in India, the world's fifth-largest passenger car market. The cooperation between the two sides also includes business in European and African markets.

From the details of the cooperation in March to the current cross-shareholding, Toyota and Suzuki continue to deepen their partnership. In the future, the cooperation between the two sides will complement each other, expand market share and make breakthroughs in electrification and self-driving technology.

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