Toyota Motor Corp. formally incorporated a partnership with China’s largest electrified-vehicle maker, BYD Co., allowing the two companies to develop and produce EVs in the south China city of Shenzhen.
The move will enable Toyota to secure battery supplies from BYD, China’s second-largest EV battery maker, and expand EV output as required by local rules.
The joint venture, with 345 million yuan ($48.6 million) in registered capital, will be equally owned by Toyota, according to qcc.com, a leading Chinese website tracking registration information and shareholder changes at domestic businesses.
In addition to developing EVs and related components, the new company will conduct sales and service, according to the website.
Under an agreement Toyota and BYD signed in July, the joint venture will develop battery-electric sedans, SUVs and crossovers and market them under the Toyota brand in China before 2025.