Two big names in the international auto industry have entered into a joint venture to conduct research and development on battery electric vehicles. This joint venture has resulted in the formulation of a new company, BYD Toyota EV Technology Co. Ltd. The registration of this new company has also been finalized now, which means that the operations will commence soon.
According to the joint venture, the operations are scheduled to commence from May 2020. BYD also has joint ventures with other auto manufacturers like Daimler of Germany.
The Cheif Executive Officer (CEO) is Zhao Binggen from BYD, and the Chairman of this new company is Hirohisa Kishi from Toyota. There are a total of six directors (three from Toyota and three from BYD) and two auditors (one from Toyota and one from BYD). The location of the head office is the Pingshan District in Shenzhen city of Guangdong province.
The core purpose of the BYD Toyota EV Technology Co. Ltd is to undertake the designing and development of battery electric vehicles. This also includes designing and developing their platforms and related parts. Both BYD and the Toyota Motor Corporation constitute 50% equity in the joint venture company. A total of 300 employees will work under this new joint venture.
The Chairman of BYD Toyota EV Technology Co. Ltd stated earlier:
“With the engineers from BYD and Toyota working together under the same roof, we aim to develop BEVs that are superior in performance and meet the needs of customers in China by merging the two companies’ strengths and also through friendly rivalry.”
On the same subject, CEO Zhao Binggen stated:
“This joint venture company will focus on the research and development of battery electric vehicles with technology and know-how from both China and Japan. Our vision is to create a future customer-first mobility style, and harmonious society for humans and nature.”
It is evident from both of these statements that the joint venture is committed to making electric vehicles more prevalent across the globe. Moreover, research and development will include making comfortable, user-friendly, intelligent, and safe electric vehicles. This will be done by investing in developing high-quality futuristic technologies. However, comparing Toyota to other renowned auto manufacturers, it has been the slowest to adopt EV technology. It was at the forefront of hybrid technology back when it launched Prius.
Another goal of this joint venture is to curb air pollution worldwide, especially in China. Internal combustion engines of normal cars contribute a lot to air pollution and the bad air quality index. Battery Electric Vehicles (BEVs) can help us improve air quality and make the atmosphere more livable. One of the many aims of the EV policy in Pakistan is to reduce the consumption of oil and to reduce air pollution.
Automakers across the globe are partnering with Chinese companies like BYD to produce low-cost electric vehicles to remain competitive in the market. Moreover, China is now becoming a technology powerhouse, especially in the realm of cheap electric vehicles.
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