Toyota Invests $600 Million in DiDi

Signing Ceremony [from left to right] Stephen Zhu, Senior Vice President of Didi Chuxing; Shigeki Tomoyama, Executive Vice President of Toyota Motor Corporation

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.