Photo/Zhang Jian (NBD)

Mar. 26 (NBD) -- China's leading new energy vehicle manufacturer BYD (002594.SZ) and Japanese automaker Toyota (NYSE: TM) on Wednesday set up a 50-50 joint venture (JV) with registered capital of 345 million yuan (48.8 million U.S. dollars).

The pair will co-develop pure-electric cars, SUVs and batteries, and the EV models are designed to hit the Chinese market before 2025 under the Toyota brand.

The auto industry is undergoing an epic revolution - electrification, once said Akio Toyoda, president of the Japanese automaker.

In the EV field, China is ten years ahead. Without ready-made experiences and components, Chinese auto companies have achieved a major transition through innovation, remarked Chen Qingtai, head of think tank ChinaEV100.

As one of the largest EV makers in China, BYD has its self-developed e-platform which integrates all the essential parts for producing EVs. The platform is what Toyota values most as it will greatly shorten the Japanese automaker's research cycle for electrification.

By teaming up with Toyota, BYD is endorsed by a large global automaker, said Shu Youxing, general manager of BYD's international cooperation business group, when having interviews with media agencies. The tie-up will allow both sides to complement each other with their respective core technologies, BYD believes.

Email: gaohan@nbd.com.cn