Toyota, BYD to build electric cars together

Toyota in April premiered in China its electrified C-HR and IZOA models.

IN A move that demonstrates its increasing partnerships with Chinese carmakers as it plans to build affordable EVs in China, Toyota Motor on Friday said it would develop battery electric vehicles with BYD Co., Ltd.

In a joint statement, Toyota and BYD said they would manufacture sedans and SUVs which would be sold under the Toyota brand in China before 2025.

Earlier this week, Toyota announced it was teaming up with China’s Contemporary Amerex Technology Co. Ltd. to supply and develop batteries for lower-emission vehicles.

Widely considered a late comer in embracing battery EVs versus 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, a report by news agency Reuters said.

But to meet this accelerated timeline, Toyota would need more batteries than it expected, prompting it to look beyond Panasonic Corp., its long-time partner in battery development, to secure supply.

These measures come amid a breakneck growth in the zero-emission vehicle market, with tighter global emissions regulations expected to shift even more drivers away from gasoline engine vehicles in the coming decades.

In China, Toyota is planning to launch its first battery EV, a version of its C-HR and IZOA compact crossover, next year. With a report from Reuters