Toyota commits $600m in new JV with China's DiDi

Toyota Motor Corporation today announces that it has concluded an agreement with China-based Didi Chuxing (DiDi) to expand collaboration in Mobility as a Service (MaaS) in the country. Under the collaboration, Toyota will invest $600 million (Rs 4,140 crore) in DiDi and a joint venture, which the two companies will establish with GAC Toyota Motor Co (GTMC) for vehicle-related services for ride-hailing drivers.

The partners had earlier announced collaboration on e-Palette in January 2018, and launched vehicle-related services, including a vehicle leasing service and various services for DiDi ride-hailing drivers at a Toyota dealer in May 2018. Those cars are equipped with Toyota's in-vehicle device, TransLog, leveraging intelligent analysis capabilities of Toyota's proprietary Mobility Services Platform (MSPF) to provide quality automobile maintenance support and safe driving guidance to ride-hailing drivers.

Under the new agreement, Toyota and DiDi plan to shift to full-scale implementation of services that they have been developing in China. By creating more-efficient and high-quality ride-hailing businesses, the two companies will provide mobility service solutions that contribute to the Chinese society.

The collaboration will allow Toyota and DiDi to expand the various connected services provided by MSPF in its value chain including vehicle management, maintenance, insurance, and financing for customers and drivers to realize the high potential of the MaaS market in China. Toyota also aims to introduce and promote the widespread use of battery electrified vehicles (BEVs) suitable for future mobility services in China.

Shigeki Tomoyama, Toyota executive vice-president responsible for the connected area, said, "I am delighted that we are strengthening our collaboration, which utilises 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."

Stephen Zhu, senior vice-president, DiDi said, "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."

Going forward, the partners will contribute to the creation of a mobility society that delivers comfort and benefits to the people in China by leveraging the know-how, services, and technologies of each other.