BYD, Toyota tie-up on BEVs for China mutually beneficial – GlobalData
Following the news that Toyota and BYD are setting up a joint company to develop battery electric vehicles (BEVs) targeted at the Chinese market, David Leggett, automotive editor at GlobalData, a leading data and analytics company, says the cooperation makes sense for both parties.
“This collaboration is a way to save costs and position both companies to capitalise on China’s rapid BEV market growth over the next ten years. GlobalData forecasts that by 2030 annual production of BEVs in China will be approaching six million vehicles per annum – a six-fold increase on the current level. China will be at the heart of future global growth for electric vehicles (EVs).
“News of the agreement between Toyota and BYD to develop EVs for the Chinese market makes sense for both. They can share costs and utilise their respective strengths.
“China-based BYD is an electric battery technology specialist with very good knowledge of the Chinese marketplace and needs, while Toyota is a global original equipment manufacturer (OEM) with proven strengths in vehicle development and can bring its systems to bear in areas such as manufacturing, quality and safety.
“Further, China is the world’s largest automotive market and Beijing is creating the conditions for a ramp-up in ‘New Energy Vehicles’ such as plug-in electric hybrids and fully-EVs.”