BEIJING (Reuters) – Toyota Motor plans to launch a hydrogen fuel-cell cars by China’s partners-Guangzhou Automobile Group’s (GAC) and the HE Group [SASACJ.UL], as the Japanese automaker seeks to boost its presence in the world’s biggest auto market.
FILE PICTURE: the Toyota Mirai fuel cell vehicle will wait for a final inspection of Toyota Motor Corp. (a). plant in Toyota, Aichi Prefecture, Japan, on April 11, 2019. REUTERS/Joe White/File Photo
Toyota will also be equipping GAC and a joint venture of the car’s fuel cell, according to the filing of the CAC on the Shanghai stock exchange on Thursday.
The companies did not disclose the financial details of the projects, and the development of the co-operation between the partners in the development of new energy vehicles, and connectivity technologies.
Fuel-cell cars use a stack of cells that electro-chemically combine hydrogen with oxygen to make electricity to propel the vehicle, with water being the only by-product.
Toyota will also expand the partnership on hybrid vehicles and want to introduce more battery-electric vehicles, with a good-quality and low price of its own with FAW and GAC.
Sources told Reuters last year, Toyota planned to sell electric vehicles, with the CAC logo, in a joint venture-dealers, in an effort to comply with China’s strict green auto light.
The new development plan reflects, as a gesture of goodwill to Beijing, by Toyota, including the company’s Chief Executive, Akio Toyoda, wants to “step on the gas pedal in China, while it is necessary to strike a balance between China and the United States of america,” according to the minutes of internal meetings, seen by Reuters.
Toyota sold about 1.5 million cars in China by 2018, well below its global rival, General Motors, and Volkswagen VOWG_p.DE sales in China as well. It is, however, to lay the groundwork for an increase in sales in China to two million vehicles a year, Reuters reported last year.
Toyota in April said it had started the supply of the fuel cell and parts of China commercial vehicle makers Beiqi Photon Motor Co. Ltd., Beijing SinoHytec Co., Ltd. In July, it said that it could supply is a key to hydrogen-fuel-cell parts to Chinese automakers FAW and Later by Bus.
Toyota will also facilitate the sharing of resources and talent to develop a “smart, connected cars with GAC and FAW.
Reporting Yilei Sun, and Norihiko Shirouzu; Editing by Emelia Sithole-Matarise