Toyota Is Investing $600 Million In Chinese Ride-Hailing Company Didi

By Dan Anderson ● July 27, 2019

  • Toyota recently announced that it is investing $600 million in China-based ride-hailing company Didi Chuxing

Toyota Motor Company announced this week that it is investing $600 million in China-based ride-hailing company Didi Chuxing. And the two companies are forming a new joint venture to expand collaboration within China.

Didi Chuxing was founded in 2012 and quickly became the largest ride-hailing service in China as it acquired a number of smaller players in the area. And Didi is also known for acquiring the local division of U.S. based rival Uber. Last year, Didi partner with Toyota to develop e-Palette — which is a self-driving car that also was also set up as a convenience store.

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Toyota said that the new joint venture would include Toyota’s Chinese partnership with Guangzhou Automobile Group, according to CNBC. And the partnership will see the companies combine services and technologies. This collaboration utilizes Toyota’s connected technologies and next-gene battery electric vehicles as pointed out by Toyota EVP Shigeki Tomoyama.

“I am delighted that we are strengthening our collaboration, which utilizes Toyota’s connected technologies and next-generation BEVs, with DiDi, China’s mobility service market leader. Looking ahead, we will work with DiDi to develop services that are more attractive, safe, and secure for our customers in China,” said Tomoyama in a statement.

Toyota has a goal of making half of its global sales come from electrified vehicles by 2025. And the company is working with China-based battery makers including Contemporary Amperex Technology and BYD to help companies shift more towards electricity-powered cars.

Didi also has similar partnerships with Volkswagen and BAIC’s energy vehicle unit. And in June, Reuters’ sources pointed out that Didi is reportedly in talks Nissan Motor and Dongfeng Group to set up a fleet management venture deal.

“DiDi is committed to help our cities achieve new energy and smart transportation goals with partners from home and abroad. We look forward to combining DiDi’s expertise in AI-based large-scale mobility operations and Toyota’s leading connected vehicle technology to build a next-generation intelligent transportation framework for sustainable cities,” added DiDi senior vice president Stephen Zhu.