Toyota, a veteran electric vehicle manufacturer, agreed to sell electric car technology to Singulato. In return, Toyota will get access to green-car credits under the renewable power quota system launched by the China government. However, the formal announcement for the deal is yet to come.
Singulato is a China-based EV startup founded in 201 and is backed by giant companies like Intel and Itochu. The shares of Singulato continuously crimping owing to the rising competition in the EV market. The company is one of at least 50 EV startups fighting to survive in China
Why is the Deal Important for Both Companies?
In an interview, the spokesperson of Singulato said the new development will allow Toyota to gain a close view of how startups in China operate and help them understand several strategies companies in region adopt to pursue in a fast-changing marketplace. And, it will also help us save a lot of time and costs to develop first ever EV.
The company is looking forward to sell its first self-developed battery electric car iS6 this year. This will compete with several models from rival startups in China and those from global automakers.
China has always been an untapped market for Toyota and this deal will help company have a bird’s eye view at the market’s prospect. While the representatives of Toyota said that Toyota is a leader in the EV manufacturing. Thus, it will help startups and be humble enough to learn from new comers.