Singulato to Take over Toyota’s EV Tech Unit

Singulato, a Beijing-based company to take over the electric car technology unit of Toyota Motor Corp, Reuters reported on Monday. Earlier, Toyota Motor Corp has never made a deal with a Chinese EV startup. The deal will boost up the development of a planned mini EV for Singulato.

The deal will allow Toyota to acquire preferential rights to buy green-car credits that the Chinese firm will generate under the new quota system in China. The quota system applies to all plug-in hybrid vehicles and EVs.

People familiar with the matter said that the deal will pave the way for Toyota to gain knowledge about the operational process and strategies that Chinese EV startups pursue in a fast-changing marketplace.

Sources related to the deal stated that with electrification, self-driving, and car-sharing shaking up the industry, past techniques need to be re-examined.

In order to rip the benefit of Toyota’s electric microcar (eQ) design, Singulato will purchase a license. The deal announcement will be made on Tuesday at an auto show in Shanghai. At the event, Singulato will showcase an idea based on the eQ.

The Chinese firm intends to redesign the vehicle, tailoring its local preferences and tastes to launch a model by 2021. The model will be cost-friendly and fuel efficient.

None of the companies has disclosed the financial terms of the deal. Sources familiar to the matter said that Singulato will pay several tens of millions of dollar for eQ’s design.