Toyota sells its EV technology for green credits in China

Toyota SUV on the road

Toyota is one of the biggest companies in the world when it comes to cars and trucks. The company is present all around the world almost in every country. The Japanese company has its own base of loyalists and caters to them religiously. It is also one of the world’s oldest companies founded in 1937. The automobile line of Toyota Industries was not formed until 1937 but the Toyota Industries existed long before that.

It is not a secret that the company has managed to evolve over the years and keep up with the technologies around. It has been one of those companies which have just grown with the rise of technology over the years. The Japanese company has deep roots within its culture and it does not believe in following the old traditional ways but updates itself with every new invention. That being said, the company took a step which might sound a step in the backward direction but has many levels to it.

Toyota has decided to sell its electric car technology to Singulato. Singulato is a Chinese startup which works on Electric Vehicles. The company’s plan to launch a mini EV would speed up with Toyota’s selling of the technology which made eQ possible. With the acquisition of the technology, the company would be able to use that design which was outstanding at the time. Toyota had outdone itself with eQ. That said, the Japanese company is not going to just sell its technology, in return the company is going to receive a form of technology as well.

Toyota is going to have rights to purchase green-car credits that Singulato will generate in China for all-electric and plug-in hybrid vehicles. This is a huge deal as it is very limited when it comes to green credits in China. Singulato Chief Executive Shen Haiyin and a couple of sources from Toyota talked about this matter.

Sources said that the old ways of doing business need to be re-examined as autonomous car driving and EVs are shaking up the market. The sources said, “With electrification, autonomous driving, and car-sharing shaking up the industry, old ways need to be re-examined. We have a century’s lead in automotive technology, but we also need to be humble enough to learn from newcomers.”

Shen talked about how this deal is going to save time in many ways. The reason is there are a ready design and successful design at their hands. It is also tested relentlessly, this allows the company to just use the design and work on it, instead of going through the tedious process of trial and error during the design phones. That is the reason why this is a good deal for Singulato and also for Toyota.

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