Japanese automotive companies Toyota Motor and Suzuki Motor are set to announce a partnership on Monday in advanced technology development including self-driving and other operations, according to media sources.

The two automakers will explore whether to expand the partnership to include a capital alliance, Japan Times reported.

The partnership will also include procurement, which includes applications for IT and sharing sources for parts in Japan and abroad, the Nikkei said.

Toyota and Suzuki said in October that they plan to explore a possible partnership, citing technological challenges and the need to keep up with consolidation in the global auto industry.

Suzuki and Toyota's unit Daihatsu Motor will continue to sell automobiles under their separate brands to avoid risks related to antitrust laws. The companies will collaborate in ways that steer clear of antitrust risk, the business daily reported.

The comprehensive tie-up comes after Toyota, Japan’s biggest automaker by volume, and Suzuki, a small-car specialist, said in October they would start talks on how they could join forces.

The Toyota-Suzuki tie-up is the latest in the domestic auto industry intended to share those hefty costs. Nissan Motor took a 34 per cent stake in ailing Mitsubishi Motors Corp last year.

Toyota also expanded joint operations with Mazda Motor Corp. in 2015 to cooperate on developing environmental and self-driving technologies. The two are now studying joint development of electric vehicles.

Toyota may also seek to jointly develop small electric vehicles with Suzuki to capitalize on its new partner’s strength in small vehicles, according to Japan Times.