BYD Company Ltd. (BYD) and Toyota Motor Corporation (Toyota) reported that they have signed an agreement to jointly develop battery electric vehicles (BEVs). Under the terms of the agreement, the companies will jointly develop sedans and low-floor SUVs as well as the onboard batteries for these vehicles. Toyota intends to launch the BEVs in the Chinese market under the Toyota brand in the first half of the 2020s.
Both Pioneers in Electrified Vehicles (HEVs and EVs)
Initially founded in 1995 as a battery business, BYD has grown into a complete energy solution company, manufacturing not only electrified vehicles but other products including large-sized energy storage cells. The company name BYD stands for "Build Your Dreams", and it offers core parts for electrified vehicles such as power electronics, batteries, and motors that BYD develops in-house.
In 2008, BYD says it became the first company 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 worldwide to launch mass production hybrid electrified vehicles (HEVs). Since then, it has pioneered electrified vehicle development (HEVs and EVs) and accumulated a wide variety of technologies and experience in the development, production, and sales of electrified vehicles.
In a joint statement, the companies indicated that in order to curb global warming, both BYD and Toyota wan to reduce CO2 emissions by encouraging the widespread use of BEVs.
Also, both companies said they believe there is a need to put aside their rivalry and collaborate on BEV development.
Plan for BEVs
Going forward, they plan to use the electrified vehicles and battery development technologies they have acquired through their market introductions, and they intend to work together to further develop BEVs that are attractive to customers and also work together in further promoting their widespread adoption.
