On Friday, Toyota Motor Corp. announced it had signed an agreement for the joint development of battery electric vehicles (BEVs) with China’s BYD Company Ltd. Technically, BYD also made an announcement but we’re not scouring their press page on an hourly basis. Toyota gets top billing.
According to the release, the two companies 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.”
Having previously announced it was teaming up with Contemporary Amerex Technology (CATL) and Panasonic to supply and develop batteries, Toyota is trying to expand rapidly into electric development — after showing limited interest for years. We’ve no clue how these partnerships will influence the brand’s physical products outside of Asia but, at the very least, it should have fewer battery supply issues than some of the competition moving forward.
The current strategy (these things are always subject to change) sees Toyota targeting 50 percent of global sales as EVs, which includes hybrids, by 2025. That’s five years sooner than previously scheduled. Presumably, these new new partnerships are necessary to make that happen.
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.