Two rival automakers in Japan, Suzuki and Toyota, have just completed initial formal talks on a wide-ranging strategic partnership.

The two auto giants have already announced their desire and willingness for a collaboration back in October 2016. Analysts are now welcoming the alliance between the two companies as they formally talk on a strategic partnership earlier this week.

Toyota and Suzuki have decided to work hand in hand in the areas of safety, environmental, information technologies, and mutual supply of components and products or procurement.

According to Akio Toyoda, Toyota president, he is truly thankful for having an opportunity to work with a company like Suzuki.

Though the formal tie-up of Toyota and Suzuki gives lacking details, they have already expressed in the previous months that they are considering a partnership.

Osamu Suzuki, Suzuki's chairman, stated that Toyota was enthusiastic all throughout the discussions pertaining to the partnership, even though Suzuki was more concerned about the progress of advance technologies, CNBC has reported.

Meanwhile, the analysts are very positive on the partnership between the two automakers, particularly Suzuki, which will be gaining access to Toyota's technology which is undeniably the leading technology at present. Experts say that the timing was good for Suzuki as the corporation has struggled to keep its pace in recent years.

Also, Toyota can also benefit from their partnership, as Suzuki's market expertise includes India. Up to the present, Suzuki now owned the accounts around half of the total global sales and according to the analyst of SBI securities, Koji Endo, Toyota is very weak in India. Endo continued that Suzuki is OK as of the moment as Maruti India, Suzuki's affiliate is making a record-high profit, Car and Bike reported.

Both companies are expecting to earn from this alliance .

Toyota has earlier mentioned the company wants to compete with other tech companies bringing tough competitions. Toyota is planning to develop new technologies like the autonomous vehicles. Also, Toyota aims to double their vehicle market in India to 10 percent by the year 2025.

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