The tie-up, which includes development of batteries for electrified vehicles, might also lead to combined production as China loosens restrictions on local manufacturing of environmentally friendly autos by foreign companies. Right now, the electric vehicles perhaps will be produced at Chinese plants that Toyota already operates with two local partners.

 

Japan's biggest automaker has been establishing joint ventures to make up for its sluggish entry into electric vehicles, as Volkswagen and other foreign rivals considerably focus on EVs.

 

BYD, which started as a battery manufacturer, sold roughly 250,000 electrified autos in 2018. Along with batteries, the automaker develops motors in-house. It hopes to blend those strengths with Toyota's vehicle design expertise and production technologies.

 

Toyota's conjunction with BYD was inspired by China's move to strengthen environmental regulations in the world's biggest auto market. Though hybrids may receive more favorable treatment than originally planned under the newest rules, automakers still will be required to manufacture a certain number of electrics.

 

By bolstering its EV business, Toyota also expects to make strides in the Chinese market, where its presence is fragile in comparison to American and European rivals. Toyota plans to bring a mass-produced electric vehicle to market in 2020, broadening the lineup to 10 or more models in the first half of the 2020s.

 

The automaker's other partnerships in this field include starting a business in 2017 to develop technologies with companies such as for example Mazda Motor and components maker Denso. Toyota also hopes to develop platforms with Subaru and release models under both of their brands in the first half of the 2020s.

 

Toyota and Suzuki Motor have an EV partnership in India. And Toyota has enrolled with forces with China's CATL as well as compatriots Toshiba and GS Yuasa in automotive batteries. Toyota said last month that it intends to elevate sales of electrified vehicles to 5.5 million units in 2025, moving up the target date by five years.

 

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