Toyota Motor Corporation in Japan and Suzuki Motor Corporation the mini-vehicle maker said they are planning to explore the possibility of entering into a partnership. The two carmakers cited technological challenges as well as the need for keeping pace with increasing consolidation across the global auto industry.

This announcement has come after Toyota closed on its buyout of Daihatsu Motors another mini-vehicle maker earlier in the year. The largest automaker in the world by sales of vehicles during 2015, announced last week it would establish an internal company to focus on the emerging markets.

Suzuki is the fourth largest Japanese automaker and specializes in mini-vehicles while competing with Daihatsu in Japan’s auto market.

Both Suzuki and Daihatsu make and market vehicles in Asia’s emerging countries. Suzuki dominates the market in India through a majority share in Maruit Suzuki India, while Daihatsu is expanding in Indonesia and Malaysia through two different joint ventures.

In a statement released by both, Suzuki and Toyota said a need was present for increased cooperation in the industry to maintain pace with the quick changes in the auto industry worldwide, where tech companies and automakers are competing in the development of autonomous vehicles and mobility services.

A statement from Akio Toyoda the President of Toyota added that in addition to R&D, which both companies are working on individually, it is important to have partners that share a common passion and goal.

Both companies said Suzuki was feeling uncertainty more and more as it faces rapidly developing technologies, while Toyota also acknowledged it might trail competitors in Europe and North American when dealing with making standardizations and in making partnerships with other businesses.

Both companies announced they would be holding a joint briefing regarding the possibility of a partnership on Wednesday in Tokyo. A spokesperson for Toyota would not give any details regarding a possible agreement.

Both companies have said they were just beginning the exploring of partnership possibilities and said they would be continuing to compete against one another and could even collaborate with other businesses.

A Suzuki and Toyota partnership would be the most recent in an auto industry under consolidation. Nissan Motors this past May announced that it planned to take a majority stake in Mitsubishi Motors. Mitsubishi has suffered from a scandal regarding the mileage per gallon of its engines.