Toyota Invests $600 Million in DiDi Chuxing

Toyota Motor Corp. is investing $600 million in Chinese ride-hailing giant DiDi Chuxing Technology Co.

As part of the deal, which was first reported by The Nikkei in May, Toyota and DiDi are establishing a joint venture for vehicle-related services for ride-hailing drivers. The venture will include Guangzhou Automobile Group Co., which already produces cars in China with Toyota.

DiDi also is part of Toyota’s e-Palette Alliance, which launched in early 2018 to develop a self-driving electric shuttle with connected and other mobility services.

Under the new agreement, Toyota and DiDi plan to shift to “full-scale implementation” of the services they’ve been testing in DiDi’s ride-hailing fleet. They includes improved fleet logistics, maintenance, insurance and financing for customers and drivers in an integrated mobility-as-a-service network.

The partnership combines DiDi’s expertise in artificial intelligence-based mobility operations with Toyota’s connected and electric vehicle technologies. Toyota also will provide its proprietary Mobility Services Platform to the new venture. Half of Toyota’s global sales are expected to come from electrified vehicles by 2025.

DiDi also is working with Volkswagen Group, BYD and BAIC's new-energy vehicle unit. Partnerships with several other carmakers, including Nissan and Chinese electric vehicle maker Lixiang, are said to be under development.