What is Cross Badging?

Cross badging, also known as co-badging or cross-branding or badge engineering, refers to the practice where a vehicle manufactured by one company (Company X) is also sold by another company (Company Y) with minor cosmetic changes. These changes typically include a different logo, altered headlights, taillights, bumpers, and other superficial elements. While the underlying vehicle remains the same, each company sells it under its own brand.

Why Cross Badging?

1. Cost Savings: Developing a new car specifically for the Indian market can cost upwards of ₹300 crore. In contrast, cross-badging only requires minor tooling adjustments, typically costing less than ₹20 crore. This allows the marketing company to enter the market without bearing the heavy development cost.
2. Expanded Product Portfolio: Through cross-badging, the marketing company can offer a wider range of vehicles across different market segments, enhancing its competitiveness and brand portfolio.
3. Economies of Scale: The manufacturing company benefits from larger production volumes, which help reduce per-unit costs and improve profitability through better resource utilization.

Cross Badging in India:

While cross-badging had already been a common practice internationally, it made its entry into the Indian automobile market through a collaboration between French automaker Renault and Japanese automaker Nissan. These two companies share cross-holdings—Renault holds a 43% stake in Nissan, while Nissan holds 15% in Renault—and have a global strategic alliance.

In the early 2010s, they introduced cross-badged models in India’s compact and sedan segments. The Renault Pulse was essentially a rebadged version of the Nissan Micra, while the Renault Scala was a cross-badged version of the Nissan Sunny.

Around the same time, Volkswagen and Škoda—both owned by the Volkswagen Group—followed a similar approach. The Volkswagen Vento was introduced under the Škoda brand as the Škoda Rapid, with minor design variations.

Market Response to Cross-Badging in India

Cross badging received a lukewarm response in the Indian market and was largely viewed unfavorably by analysts. The introduction of cross-badged models led to a decline in sales of the original model, and the combined sales of both versions failed to match earlier expectations. Cannibalisation, one model eating the other, a threat in cross-branding strategy, became a reality.

Business Today even conducted a case study into the reasons behind its failure in India. The key insight provided by the late Dr Abraham Koshy, former Marketing Professor IIMA, was Cross cross-badging tends to be effective in markets with strong brand loyalty. However, Indian consumers are highly value-conscious and are more likely to switch brands for better deals or features. At the time, brands like Renault, Nissan, Volkswagen, and Škoda were still relatively new to the Indian market and hadn’t yet established deep brand trust.

Toyota and Suzuki Enter the Cross-Badging Arena

Both Suzuki and Toyota trace their origins to Enshu, in Japan’s Shizuoka Prefecture, where they initially operated as loom manufacturers before transitioning to automobiles.

Suzuki made its mark in India by being the sole bidder in a global search for small car production partners. In 1981, it entered into a joint venture with the Government of India to form Maruti Udyog Limited (now Maruti Suzuki India Limited). This move revolutionized the Indian auto industry. “Maruti” became synonymous with affordable, reliable cars, making it a household name. Despite a drop in market share from a peak of 65% in 2004–05 to around 40% in 2024, Maruti Suzuki remains the market leader in India. However, Suzuki is 12th in the sale of passenger cars worldwide in 2024.

Toyota, a global automotive giant, manufactures vehicles and components worldwide through its own plants and affiliated companies. It has consistently ranked as the world’s top-selling automaker, including in 2024. Toyota entered the Indian market in 1997 through Toyota Kirloskar Motor Pvt. Ltd., a joint venture with the Kirloskar Group.

In 2016, a strategic partnership began to take shape when Suzuki’s then-Chairman Osamu Suzuki and Toyota’s President (now Chairman) Akio Toyoda initiated discussions. Since then, the two companies have formed a deep collaboration across multiple areas, including vehicle production, mutual supply of models, and promotion of electrified mobility solutions.

The Toyota-Suzuki Cross Badging Journey in India

The first product of the Toyota-Suzuki partnership in India was the rebadging of Suzuki’s Baleno, originally launched in 2015, as the Toyota Glanza in 2017. However, by 2019, the collaboration hadn’t delivered the expected results in terms of market performance. Despite this, both companies remained committed, focusing on the long-term strategic benefits of the alliance: Toyota leveraged Maruti Suzuki’s expertise in small cars, while Maruti Suzuki gained access to Toyota’s hybrid electric vehicle technology.

In 2020, the partnership expanded into the SUV segment with Suzuki’s Vitara Brezza rebranded as the Toyota Urban Cruiser. Due to low sales, the Urban Cruiser was later discontinued.

However, the collaboration continued with a more impactful model. In 2022, Toyota Urban Cruiser Hyryde was also cross badged as Suzuki Grand Vitara, and introduced as the compact SUV space.

Under the partnership, Toyota rebadged its Innova in 2023 as the Maruti Suzuki Invicto, a premium D1-segment MUV. By the end of FY2025, the Invicto had sold a total of 8,635 units—a modest figure by Maruti’s usual sales standards.

Taking the partnership further, in April 2024, Suzuki’s Fronx (a C-segment multi-purpose vehicle) was launched under Toyota’s banner as the Urban Cruiser Taisor, marking the latest chapter in their cross-badging collaboration.

Overwhelming Results for FY 2024-25

Toyota sold approximately 30,000 units of the rebadged Tisor during the fiscal year. Rebadged Maruti models accounted for nearly 40% of Toyota’s total vehicle sales in India, making the country its fourth-largest market globally. Meanwhile, the original Maruti Fronx recorded over 1.5 lakh units sold in FY25, highlighting the success of both brands. The collaboration created a win-win scenario: customers of both Maruti and Toyota benefited from access to each other’s nationwide service networks.

The Road Ahead in This Collaborative Journey

The success of this partnership has extended beyond India. Collaborative vehicle launches have expanded into Africa, Japan, Europe, and the Middle East. Suzuki and Toyota are now deepening their alliance in the electric vehicle (EV) space. A new battery electric vehicle (BEV) SUV—developed by Suzuki and based on the eVX Concept—will be produced at Suzuki’s Gujarat plant and supplied to Toyota. The global launch of this BEV SUV is scheduled for September 2025.

This marks a significant shift from a simple cross-badging strategy to a deeper collaboration rooted in shared platforms, technologies, and ideologies—a model that could set new standards for the automotive industry.

Key Insights

• Drawing from the insights of the late Dr. Abraham Koshy, Indian automotive consumers have evolved to appreciate brand value and build trust in brands.
• Over time, many customers have upgraded from entry-level segments (A and B) to more premium C and C+ segments. Suzuki, once known primarily as a small car manufacturer in India, has successfully transitioned to serving a more upscale market.
• A common concern in cross-badging strategies is the potential erosion of the dominant brand’s image. Toyota, as a global leader, acknowledged this risk but chose to embrace it. The results have been rewarding, enhancing its presence in India and laying a foundation for global expansion in the EV market.