Toyota Invests $600 Million in DiDi

Toyota Motor Corporation and DiDi Chuxing (DiDi) announced on July 26 their cooperation in smart transportation services. As part of the deal, Toyota invested $600 million in DiDi and a joint venture company the two enterprises will establish.

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The new company will launched by DiDi and GAC Toyota, a joint-venture between GAC Group and Toyota Motor Company, to provide vehicle-related services for DiDi's drivers.

"I am delighted that we are strengthening our collaboration with DiDi, China's mobility service market leader, utilizing our connected technologies and next-generation BEVs," said Shigeki Tomoyama, Toyota's executive vice president responsible for the area.

Through this agreement, Toyota and DiDi plan to proceed to a full-scale implementation of services that they have been developing in China. By creating a more-efficient and high-quality ride-hailing business, they will provide mobility service solutions that contribute to Chinese society.

The two companies' relationship dates back to January 2018, when they announced a collaboration on the e-Palette project. Four months later, they launched vehicle-related services, including a vehicle leasing service and various services for DiDi ride-hailing drivers at a Toyota dealer.

DiDi's partnership with Toyota is part of the D-Alliance, a partnership expansion program where DiDi connects with car manufacturers and other vehicle-related companies, including foreign giants such as Volkswagen and Renault-Nissan-Mitsubishi, as well as Chinese automakers like FAW, Dongfeng and GAC.

“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," said Stephen Zhu, senior vice president of DiDi.