Toyota & BYD Establish Joint Company in China for Electric Vehicle Development

Andrew Cummings
November 10, 2019

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.

Toyota and BYD both aim to collaborate in order to develop battery electric vehicles (BEVs) that are appealing to the customers of China. Both Toyota and BYD will staff the new company by transferring engineers and the jobs now involved in related research and development from their respective companies.

Toyota says the two companies have agreed to get the new firm up and running by the end of 2020, and to evenly split the capital needed.

With a focus on conventional hybrid vehicles and hydrogen fuel cell technologies, Toyota revealed no electrified vehicle plans until late 2017, when the company set a target to sell 5.5 million "electrified vehicles" by 2030, including more than 1 million all-electric vehicles and fuel-cell cars.

Founded in 1995 as a battery business, BYD (Build Your Dreams) has grown into a total energy solution company, manufacturing not only electrified vehicles but other products such as large energy storage cells.

The companies first announced a partnership in July.

"Over the long-run, the collaboration could further enhance its competitiveness in the market and we believe BYD will remain as the market leader in the (new-energy vehicle) segment backed by its strong product pipeline", the note said. In 2008, BYD became the first in the world to sell mass produced plug-in hybrids, and since 2015, BYD is the top seller of EVs and PHEVs in the world.

BYD and Toyota will transfer their own engineers and R&D jobs to staff the new venture, which will be based in China. "We hope to further advance and expand both BYD and Toyota from the efforts of the new company with BYD".

Toyota globally expects to hit its target of having electrified vehicles accounting for over half of all sales by 2025, five years ahead of initial projections.

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