BYD Company Ltd., a Chinese automaker, has recently entered into a joint venture agreement with Toyota Motor Corporation, another Japanese multinational automotive manufacturer, for the designing and development of new electric vehicles. The new joint company cements the deal.
"We aim to combine BYD's strengths in development and competitiveness in the battery electric vehicle market with Toyota's quality and safety technology to provide the best [battery elecctric vehicle] products for the market demand and consumer affection as early as we can", BYD Senior Vice President Lian Yu-bo said.
The JV will be founded in 2020 in China.
BYD is the latest of several new EV bedfellows for Toyota, which has also announced a partnership with Panasonic and a broadened commitment with Subaru, increasing the likelihood that its joint venture with BYD will only have a direct impact on the Chinese market.
The news formalizes Toyota's July announcement about an alliance with the Chinese automaker as part of its broader plan to roll out at least 10 new battery-powered electric vehicles in the country by 2025. The government is promoting clean energy vehicles to fight pollution and spur new industries.
The C-HR and IZOA will be the first battery-electric vehicles for sale in China under the Toyota brand. His company Berkshire Hathaway owns a 2% stake in BYD.
BYD shocked investors last month with news that its full-year profit could plunge as much as 43% on sluggish sales. BYD also building an elevated monorail system in China called SkyRail.
It has subsequently expanded into manufacturing electric bicycles, forklifts, rechargeable batteries, as well as full battery, plug-in, hybrid and internal combustion engined cars, buses, and trucks. Since 2015 onwards, BYD's sales of BEVs and PHEVs have been ranked first in the world. Terashi added that we expect to further expand both BYD and Toyota from the combined efforts. Toyota's hybrid-electric Prius first went on sale in Japan in 1997. Moreover, they wish to expand the adoption of these electric vehicles to reduce Carbon dioxide emissions with an aim to curb global warming and improve the environment.