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The announcement comes after the Japanese companies agreed in February to trade expertise in parts supplies and research and development.
The partnership could help Toyota to expand in India's massive car market, where drivers prefer the type of affordable compact vehicles in which Suzuki excels.
Suzuki, in turn, is expected to gain from Toyota's innovations in automated driving, artificial intelligence and low-emission vehicles.
The companies said Suzuki will produce the electric vehicles and supply some to Toyota, which will provide technical support.