1 In 2 Cars Sold By Toyota In India Are Maruti Suzukis: We Explain

We are all aware that the strategic partnership between the Japanese automotive giants Toyota Kirloskar Motors and Maruti Suzuki India Limited has been a huge success. Under this partnership, both companies have introduced rebadged versions of their cars and have managed to sell them effectively. Now, following the release of the latest sales figures for the rebadged models, it has been found that 1 out of 2 Toyotas currently sold in India is made by its alliance partner, Maruti Suzuki.

Every Other Toyota is a Maruti Suzuki

For those who may not be aware, both Toyota and Maruti Suzuki perform badge engineering. This means they sell a vehicle produced by one company under the brand name of another. This is not a new concept in the automotive industry.

However, it requires careful execution to ensure that the rebadged vehicles find buyers and do not cannibalize the sales of the original models. In the case of Toyota and Maruti Suzuki, this strategy has been exceptionally successful.

As per the latest sales data, for the first four months of FY2025 (April to July 2024), Toyota’s rebadged models—Glanza, Urban Cruiser Hyryder, Urban Cruiser Taisor, and Rumion—accounted for a staggering 52% of TKM’s total passenger vehicle sales. The cumulative wholesale figure stands at 51,314 units for the above-mentioned models.

Overall, Toyota’s total sales for the same period are 97,867 units. This marks a significant increase from the same period in the previous fiscal year, where only two rebadged models (Glanza and Hyryder) were available, both of which contributed to 40% of Toyota’s total sales of 72,234 units.

Sales Analysis

Among all of Toyota’s rebadged models, the most successful has been the Urban Cruiser Hyryder, a midsize SUV based on Maruti Suzuki’s Grand Vitara, which offers both mild and strong hybrid technologies.

The company managed to sell a total of 18,852 units between April and July 2024. Hyryder saw a 58% year-on-year increase, making it the best-selling model in Toyota’s rebadged lineup.

The Glanza premium hatchback, which is based on the Maruti Baleno, followed closely with 17,851 units sold. It reflected a decent 4% year-on-year growth. As for the newer entries into the market, such as the Urban Cruiser Taisor and the Rumion, they have also made a strong impact.

The Taisor crossover SUV, launched in April 2024 and based on the Maruti Fronx, quickly gained traction with 8,005 units sold in just four months. Meanwhile, the Rumion, which is the MPV based on the Maruti Ertiga and launched in August 2023, posted a sales figure of 6,606 units during the same period. It has contributed to a total of over 12,500 units since its launch.

Why Badge Engineering Works for Toyota and Maruti Suzuki?

There are two main reasons behind the success of badge engineering between Toyota and Maruti Suzuki. It is because of these reasons that both companies have been witnessing a surge in sales without damaging the other brand.

Now, coming to the reasons, the first reason is that in India, the Toyota brand commands significant respect and trust. The Japanese brand is known for its reliability, durability, and strong after-sales service. So naturally, any vehicle bearing the Toyota badge is instantly perceived as a high-quality product.

This brand value has a magnetic effect on Indian buyers. They are more likely to consider a car if it carries the Toyota logo, even if the vehicle’s origins trace back to Maruti Suzuki. For instance, models like the Baleno and Fronx, when rebadged as the Toyota Glanza and Urban Cruiser Taisor, respectively, have seen strong demand simply due to their association with the Toyota name.

Apart from the above-mentioned reason, there is another crucial factor behind the success of these rebadged models. That reason is the fact that the original Maruti Suzuki versions are already well-established and popular in the market.

Vehicles like the Baleno, Grand Vitara, and Ertiga have a strong following in India, thanks to their combination of affordability, practicality, and fuel efficiency. By rebadging these already successful models, Toyota ensures that it is offering products that have already proven their appeal to Indian consumers. This significantly reduces the risk associated with introducing new models.

Why Badge Engineering Failed for Nissan and Renault?

Now, you may be wondering why the Toyota-Maruti Suzuki partnership has flourished, while other automakers like Nissan and Renault have failed miserably by doing the same badge engineering.

The primary answer to this is that there is a difference in brand perception between Nissan and Renault compared to Toyota. Neither Nissan nor Renault enjoys the same level of brand equity in India as Toyota.

This means that simply rebadging a Renault model as a Nissan (or vice versa) did not carry the same weight with Indian consumers. Additionally, the models involved in the Nissan-Renault badge engineering were often not as well-received in the market as Maruti Suzuki’s offerings.

Hence, this led to lackluster sales and limited success. Additionally, the lack of differentiation between the Nissan and Renault models confused customers and diluted the identity of both brands. In contrast, Toyota’s rebadged models are distinct enough from their Maruti Suzuki counterparts, thanks to Toyota’s strong brand identity and strategic marketing.

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