Toyota to Strike a Deal with EV Startup Singulato

Toyota, just recently, made negotiations with Singulato, a new Chinese automobile startup company, to sell them its electric car technology. This will be Toyota’s first deal with a Chinese automobile company which focuses on electric vehicles. Toyota’s deal with Singulato will likely improve the latter’s progress on its planned mini EV.

For Toyota’s benefit, it will have preferential rights to purchase green-car credits, which the startup company will generate in compliance with the new quota system for all-electric and plug-in hybrid vehicles in China.

According to Singulato’s Chief Executive, Shen Haiyin, Toyota, the veteran between the two companies, will also be able to observe and oversee how Chinese startup companies, especially those that focus on electric vehicles, conduct operations and the strategic planning they devise in attempts to adapt to a fast-paced market.

"With electrification, autonomous driving and car-sharing shaking up the industry, old ways need to be re-examined," Toyota stated.

"We have a century's lead in automotive technology, but we also need to be humble enough to learn from newcomers."

The deal is due to be announced on Tuesday in Shanghai, along with Singulato’s reveal of a concept car that implements the design of eQ, Toyota’s battery electric microcar, which the startup company is set to acquire.

Singulato is planning to redesign the eQ and modify it to be more enticing to locals. To come up with an affordable model based on Toyota’s design, but will have more power and driving range, by early 2021, will be its target.

"This deal gives us a way to save on time and costs to develop a reliable car and focus on what we excel in," Shen said.

Toyota, though unwilling to specify details, said it has been making its move to accelerate its business in the Chinese market.

It plans to sell its first self-developed battery electric car called the iS6 this year, competing with models from rival startups like Nio and WM Motor as well as those from global automakers.

The Chinese EV startup, which was founded in 2014 with the support from Intel Corp. and Japanese trading house Itochu Corp. plans to sell its first model, the iS6, this year.

Singulato is one of at least 50 Chinese EV startups, along with rivals Nio and WM Motor, and is also seeking to survive in a competitive market dominated by the likes of Tesla, BMW, Nissan, etc.

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