BYD Company Ltd. (BYD) and Toyota Motor Corporation (Toyota) have announced that they have signed an agreement for the joint development of Battery Electric Vehicles (BEVs). The two parties will jointly develop sedans and low-floor SUVs as well as the onboard batteries for these vehicles and others with the aim of launching them in the Chinese market under the Toyota brand by the first half of 2020.

BYD was founded in 1995 as a battery business and has grown into a total energy solutions company, manufacturing not only electrified vehicles but other products such as large sized energy storage cells. The company also builds core parts for electrified vehicles such as batteries, motors and power electronics.

In 2008, BYD became the first company in the world to sell mass production of Plug-in Hybrid Electrified vehicles (PHEVs). Since 2015 onwards, BYD's sales of BEVs and PHEVs have been ranked first in the world for four consecutive years.

In 1997, Toyota became the first company in the world to launch mass production Hybrid Electrified Vehicles (HEVs). Since then, it has become a pioneer of electrified vehicle development and accumulated a rich array of technologies and experience in the development, production, and sale of electrified vehicles.

To curb global warming, both BYD and Toyota seek to reduce CO₂ emissions by promoting the widespread use of BEVs. To accomplish these goals, both companies believe there is a need to put aside their rivalry and collaborate. Therefore, the two companies have agreed to jointly develop BEVs.

Going forward, BYD and Toyota will make use of their current electrified vehicle and battery development technologies they have acquired and will work together to further develop new BEVs that are both attractive to customers and that will further promote their widespread adoption.