Shanghai (ZXZC)- Both Japanese auto giant Toyota and China's BYD announced on April 2 the formal establishment of their joint venture that focuses on R&D of battery electric vehicles (BEVs), showing their resolution to jointly deploy in BEV field.

(Photo source: BYD, GAC Toyota)

Since they signed an agreement for the forming of the BEV R&D joint venture on November 7, 2019, the preparations have been actively pushing ahead with, and the operations are scheduled to commerce in May 2020, said two companies.

Located in Pingshan District, Shenzhen, the 50/50 joint venture is named BYD Toyota EV Technology Co.,Ltd. Hirohisa Kishi from Toyota will serve as chairman, and Zhao Binggen from BYD will assume the chief executive officer (CEO). Its line of business includes design and development of BEVs and their platforms and auto parts. Around 300 staff members will work there.

Under the agreement inked in last November, the Japanese and Chinese automakers intended to co-found a R&D company, which would work on designing and developing BEVs (including platform) and its relevant parts. Besides, both companies planned to staff the new joint venture by transferring engineers and other employees from their respective talent pools.

In fact, Toyota and BYD formed the tie-up as early as July 2019. At that time, they decided to jointly develop sedans and low-floor SUVs as well as the onboard batteries for these vehicles, which were set to be launched in Chinese market under the Toyota brand in the first half of 2020s.

BYD, the leading NEV manufacturer in China, also teams up with the German auto giant Daimler, As a result of the partnership, both parties launched in March 2012 the joint-venture brand “DENZA”, which incorporates their respective R&D advantages in battery, electric motor, ECU, complete vehicle manufacture as well as auto platforms.