Isuzu Motors Ltd and Yanmar Diesel Engine Co will begin cross-supplying diesel engines for forklifts and other non-automotive vehicles next year.

A joint statement said Isuzu would supply Yanmar, an agricultural machinery maker, with up to 5,000 four-cylinder forklift engines each year, ranging from 4.8-litres to 5.2-litres, from its Tochigi plant.

Yanmar would provide up to 20,000 engines, built at its Biwa plant, to Isuzu for boats and agricultural machinery. The companies would share or jointly procure parts to reduce costs.

Yanmar and Isuzu wanted to boost their engine line-ups to bolster faltering domestic sales, and respond to an increase in overseas demand, particularly in the United States, company officials said.

The two companies are also considering joint research on environmentally-friendly technologies and joint product development in the future, to reduce the cost of investment.