Toyota has announced that it will partner with BYD to develop all-electric cars in China. Together, Toyota and BYD (once used to be Toyota’s arch rival in China) will develop all-electric sedans and SUVs. The vehicles will reportedly be launched under the Toyota brand name during the first half of the 2020.
Toyota has also reached a deal to partner with another battery company in China, Contemporary Amperex Technology Company Limited (CATL). The CATL deal however is solely a battery deal, involving no EV development. Furthermore Toyota also has a battery partnership with Panasonic.
According to an official Toyota statement:
To curb global warming, both BYD and Toyota seek to reduce CO2 emissions by promoting the widespread use of Battery Electric Vehicles (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.
Toyota is looking to accelerate its all-electric car plans after lagging behind for years, though the company has said it’s not turning away from hybrids, either. Toyota aims to sell 5.5 million EVs including traditional gasoline-electric hybrids, plug-in hybrids, all-electric and hydrogen fuel cell vehicles by 2025.
Additionally, Toyota plans to introduce 10 new electrified vehicles in China by the end of 2020. It also debuted two nearly similar subcompact crossover vehicles in China earlier this year — the C-HR and IZOA which are expected to hit the Chinese market next year.
On the other hand BYD broke ground on a 20 GWh battery gigafactory earlier this year. The company produces a number of its own electric vehicles, including electric cars for China, electric trucks, and electric buses. Furthermore BYD also already has a partnership with Daimler for making electric cars for the Chinese market under the Denza brand name.