Toyota, the world’s largest car manufacturer, has signed an agreement with BYD Company Ltd., one of China’s largest privately-owned developers of rechargeable batteries, to establish a joint research and development (R&D) company for battery electric vehicles (BEVs).
The new R&D company is set to be established in China next year, with BYD and Toyota to evenly share 50 per cent of the total capital needed. The pair will staff the new company by transferring engineers and the jobs currently involved in related R&D from their respective companies.
Commenting on the establishment of the new company, BYD senior vice president Lian Yu-bo said: “We aim to combine BYD’s strengths in development and competitiveness in the battery electric vehicle market with Toyota’s quality and safety technology to provide the best BEV products for the market demand and consumer affection as early as we can.”
Toyota executive vice president Shigeki Terashi added: “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. We hope to further advance and expand both BYD and Toyota from the efforts of the new company with BYD.”
BYD, which stands for ‘Build Your Dreams’ was founded in 1995 as a battery business and has grown into a total energy solution company, manufacturing not only electrified vehicles but other products such as large-size energy storage cells. In 2008, BYD became the first company in the world to sell mass production of plug-in hybrid electrified vehicles (PHEVs).