Published: Sun, November 10, 2019
Economy | By

Today’s Pickup: BYD and Toyota announce joint BEV venture

Today’s Pickup: BYD and Toyota announce joint BEV venture

China's leading new energy vehicle manufacturer BYD announced Thursday that it will start up a 50-50 joint venture (JV) company with Toyota to develop battery electric vehicles (BEVs).

It came from a partnership between the two automakers formed in July to co-develop BEVs and auto batteries.

The JV will be set up in 2020, and staffed by engineers and employees now involved in related research and development work from the two companies. BYD and Toyota also plan to staff the new JV by transferring engineers and jobs now involved in related R&D from their respective companies.

"With the same goal to further promote the widespread use of electrified vehicles, we appreciate that BYD and Toyota can become 'teammates, ' able to put aside our rivalry and collaborate", Toyota Executive Vice President Shigeki Terashi, said.

BYD's Senior Vice President Lian Yu-bo added this collaboration will help bring new battery-electric cars to market as quickly as possible. The company announced in September that it had signed an agreement with FAW Group Corp. and GAC Group.

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.

BYD was founded in 1995 as a battery company and has grown into a total energy solutions provider, manufacturing a wide range of clean energy products including, electrified vehicles, solar energy and large-size energy storage cells.

When it comes to electrification, Toyota is a pioneer in hybrid cars. Since 2015 onwards, BYD's sales of BEVs and PHEVs have been ranked first in the world.

Toyota has sold more than 14 million electrified vehicles worldwide and has accumulated extensive knowledge concerning the development, production, and sale of both HEVs and their related core components.

Widely considered a late comer in embracing battery EVs, compared with rivals including Nissan, Toyota had flagged in June that it aimed to get half of its global sales from EVs, including gasoline hybrids, by 2025, five years ahead of schedule.

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