TOKYO: Toyota and Suzuki said Wednesday they are holding talks about a possible partnership to handle “unprecedented” changes in the global auto industry, as Japan's vehicle sector sees a wave of consolidation.

Toyota, the world's biggest automaker, and small car specialist Suzuki did not announce details but suggested any partnership could focus on new safety and environmental technologies.

“The environment surrounding the automotive industry has been changing drastically and rapidly in an unprecedented fashion,” a joint statement said.

“As such, the industry is required to work not only on conventional automobile R&D (research and development), but also on R&D for advanced and future technologies in the fields including environment.”

Toyota added that it was trailing competitors in North America and Europe in some areas, while Suzuki was struggling to forge its own path in the fiercely competitive industry.

The firms are holding a press briefing in Tokyo around 9:30 GMT.

Japan has eight domestic automakers in an intensely competitive market.

Suzuki sells about 2.8 million vehicles a year globally compared with more than 10m for Toyota. Nissan earlier this year announced plans to buy a one-third stake in Mitsubishi Motors — which was embroiled in a fuel-testing scandal — forging an alliance that will challenge some of the world's biggest auto groups.

In January Toyota made its mini-car unit Daihatsu a wholly-owned company in a move that gave Toyota definitive control over a company that has battled with Suzuki in Japan's domestic mini-car segment. It also strengthens its footing in Southeast Asia.

Suzuki formed a capital alliance with Volkswagen in 2009 after ending a partnership with US giant General Motors.

But the tie-up ended in August last year due to disagreements over management control and other issues, weeks before the emissions-cheating scandal tainted the Volkswagen brand.

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Spoiler alert
17 Jun, 2026

Spoiler alert

AFTER the temporary peace deal between the US and Iran is physically signed in Geneva on Friday, an arduous process...
Storm-tested cities
17 Jun, 2026

Storm-tested cities

THE deaths caused by the latest spell of monsoon rains in KP and Punjab illustrate how quickly severe weather can...
Chakwal tragedy
17 Jun, 2026

Chakwal tragedy

A NINE-year-old girl is dead because a Punjab Crime Control Department gunman mistook her family’s car for a...
A new deal
Updated 16 Jun, 2026

A new deal

AFTER three and a half months of war between US-Israel and Iran and an acrimonious temporary ceasefire, a genuine...
Charter of economy
16 Jun, 2026

Charter of economy

NO one expected the PTI to accept the government’s invitation to sign a charter of economy; just as few expected...
Hostage seamen
16 Jun, 2026

Hostage seamen

SOME 50 days on, 11 Pakistani nationals are still in Somali pirates’ captivity. Their appeals to the Pakistani and...