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Toyota to invest $600 million in China, A new joint venture, to develop mobility services

SHANGHAI (Reuters) – Toyota Motor Corp said on Thursday it will invest $600 million in a Chinese-rides-from giant, A Chuxing, as well as a new joint venture, the companies are trying to develop a connected and electric vehicle technologies in China.

FILE PHOTO: A Toyota logo is shown at the 89th Geneva international motor show in Geneva, Switzerland, March 5, 2019 at the latest. REUTERS/Denis Balibouse/File Photo

The move accelerates a trend in China has seen automakers to launch their own ride-hailing services, and ride-coming companies, including A team-up with car manufacturers to develop purpose-built vehicles for the services they provide.

It is also possible, as in the auto and communications industries, the development of the next generation of connected vehicle technologies, including self-driving, and the so-called vehicle-to-everything technology, with the advancement of 5G network technology.

Toyota said that its new joint venture with the Japanese automaker’s Chinese co-operation with the Guangzhou Automobile Group Co Ltd (GAC), which would see the companies combine it services and technologies to the fleet management, vehicle maintenance, and car rentals.

This collaboration will take advantage of Toyota’s technology and the next generation of battery-electric vehicles, Toyota’s Executive Vice President Shigeki Tomoyama said in a statement.

Toyota, which has said that it is one half of the world-wide sales of electric cars by 2025, and has tapped the Chinese battery makers, including those of Contemporary Amperex Technology Ltd (CATL), and BYD Co. Ltd. for the support of the shift towards electricity-powered cars. The move is in line with the general rules, and by a strong push among automakers to develop the new-energy vehicle industry.

It has also been said that it will set up a joint venture for the development of connected vehicles by Japanese auto parts maker Denso Corp. (a).

THE RELATIONSHIPS WITH THE AUTOMAKERS

A Toyota and A Thursday, doesn’t specify whether the collaboration will include in the car design and manufacturing, which is a part of A’s goal is to eventually develop a purpose-built cars for his or her service.

Toyota, and She has previously on any other vehicle projects for for A drivers.

She also has ventures with Volkswagen AG VOWG_p.DE), BYD and BAIC new energy vehicle.

Sources told Reuters in June that She was in talks with Nissan Motor Co Ltd and its China partner, Dongfeng Motor Co. Ltd., in order to provide a different fleet-management venture.

A source familiar with the matter have told Reuters that the Chinese electric-car maker, Lixiang, formerly known as CHJ, it is to work with A building, a car model to move.

Reporting Yilei Sun, and Brenda Goh in Shanghai; Editing by Stephen Coates Cushing and Christopher

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