Toyota and BYD join forces in electric vehicles
- The Japanese Toyota group and the Chinese BYD group have joined forces to develop 100% electric vehicles (BEV) for the Chinese market. These future models, which will be launched from 2025 onwards, will be sold in China under the Toyota brand. With this partnership, Toyota aims to develop affordable electric vehicles for the Chinese market, the world's leading market for electric vehicles. Toyota is indeed far behind its competitors in the field of electric cars, since it has focused for the past twenty years on hybrid cars. BYD is the leader in 100% electric cars in China (the world's largest electric vehicle market) and is neck and neck with Tesla worldwide.
- The cooperation with BYD is part of Toyota's strategy to achieve half of its global sales with electrified vehicles (electric and hybrid) by 2025, five years earlier than initially planned.
- But to cope with this acceleration, Toyota needs more batteries than expected, pushing it to look beyond its supplier Panasonic, to secure its supplies. This is why Toyota has signed an agreement with CATL, which will be its second battery supplier.
- These measures are part of a context of strong growth in the market for zero-emission vehicles. Although this market is still only a niche, stricter emission regulations in larger markets should gradually convert drivers of 100% internal combustion engine vehicles in the coming decades. For Toyota, it is also a response to the quotas imposed by the Chinese government.
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