Toyota and BYD announce joint venture to make electric vehicles
BYD and Toyota have not yet revealed any production timeline or targets. However, it is confirmed that the joint venture will employee 300 people initially.
Japanese carmaker Toyota and Chinese electric vehicle manufacturer BYD announced a joint venture to develop battery-powered vehicles.
Called as BYD Toyota EV Technology, it will commence operations in May 2020.
Zhao Binggen, CEO of the new company BYD Toyota EV Technology, said, “We will focus on the research and development of battery electric vehicles with technology and know-how from both China and Japan. The company is committed to promoting and populating high-quality technologies that make battery electric vehicles more environmentally friendly, safe, comfortable, and intelligent”
Apart from Toyota, BYD also has a collaboration with the German carmaker Mercedes Benz – under the brand name Denza – to produce luxury electric vehicles.
The company has not yet revealed any production timeline or targets. However, it has confirmed that it will employee 300 people initially.
Headquartered in Shenzhen, the new joint venture will try to manufacture customer-centric mobility solutions by merging ‘the strengths of the two companies’.
Earlier last month, BYD announced a new Blade Battery, which can survive the nail penetration test. This new battery will be far less susceptible to catching fire even when severely damaged.
BYD also marked its presence in India with the delivery of its electric bus in Silvassa Smart City in February 2020.
In July 2019, the Chinese government reduced subsidies offered for purchase of new energy vehicles, including plug-in hybrids and fuel cell electric vehicles. Following this move, new electric vehicle registrations dropped in the second half of 2019.
Further, and the coronavirus pandemic led to sale volumes in China drop by a massive 54 percent. The government now wants to bring back the subsidies to support the market.
Several established carmakers from around the world have been eyeing the lucrative Chinese market and want a share of the low-cost electric vehicle demand, including Volkswagen and Ford.
(Edited by Saheli Sen Gupta)