TOYOTA CITY, Japan – BYD Co., Ltd. and Toyota Motor Corp. announced on July 19 that they have signed an agreement for the joint development of battery electric vehicles. The two parties will jointly develop sedans and low-floor SUVs as well as the onboard batteries for these vehicles and others with the aim to launch them in the Chinese market under the Toyota brand in the first half of the 2020s.
To curb global warming, both BYD and Toyota seek to reduce CO2 emissions by promoting the widespread use of BEVs. To accomplish these goals, both companies believe there is a need to put aside their rivalry and collaborate; therefore, the two companies have agreed to jointly develop BEVs.
Going forward, BYD and Toyota will make use of the electrified vehicles, and battery development technologies they have acquired through their market introductions and will work together to further develop BEVs that are attractive to customers and in further promoting their widespread adoption.
In 2008, BYD became the first company in the world to sell mass production of plug-in hybrid electrified vehicles (PHEVs). Since 2015 onwards, BYD’s sales of BEVs and PHEVs have been ranked first in the world for four consecutive years.
In 1997, Toyota became the first company in the world to launch mass production hybrid electrified vehicles (HEVs) with the Prius. Since then, it has become a pioneer of electrified vehicle development, and accumulated a rich array of technologies and experience in the development, production and sales of electrified vehicles.
Toyota, like other foreign automakers, is also under pressure to meet the country’s stringent “dual credit” requirements on both corporate average fuel consumption and new energy vehicles. The deal with BYD recognizes the Chinese private EV and battery maker as a leader in that space and helps accelerate Toyota’s efforts to roll out EVs in China to meet the regulatory requirements.