Chinese electric vehicle major BYD Auto (BYD) and Japanese commercial vehicle maker Hino Motors, have signed an agreement to establish a new joint venture company for commercial battery electric vehicles (BEVs) development.

This announcement is a follow-up to the companies announcing a strategic alliance in April 2020 for collaborative development of BEVs.

As per the new announcement the new venture is scheduled to be established in China in 2021, with BYD and Hino each making a 50 percent capital investment. The JV will combine the strengths of both companies to develop BEVs and electric units and will aim to quickly implement the ideal products for customer needs, primarily in the Asian market. The JV will initially launch vehicles under the Hino brand in the first half of the 2020s.

The partners will work together to develop and spread the best-fit commercial BEVs for customers to achieve low-carbon societies.