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The two of the biggest automaker companies in the world are looking to team up and create an electric car technology. Mazda and Toyota agreed to work hand-in-hand in the development of an electric auto in hopes to enter the growing market of battery-powered cars.

The whole e-car market is still dominated by Tesla but other auto companies have been expressing their interest on the market, even Google have started their own research and development. Just recently, Intel was also reportedly dipping its toes into the e-car market with processors aimed to aid the whole development and function of the autos.

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Toyota, Mazda Partnership

Toyota took the initiative to start the collaboration with Mazda, the big partnership is highly buoyed by the fact that the Chinese government is keen on pushing the big shift from diesel-powered cars to the more environmentally friendly electric cars for the next two to three decades. This new decree is applying immense pressure on local car manufacturers and the shrinking prices for the battery pack is also a big plus for car companies who are interested to jump in the electric vehicle craze.

Toyota also noted that their joint venture with Mazda will start with the development of a technology for a vast number of electric cars which includes; mini-vehicles, passenger cars, some SUVs and a handful of light trucks as well.

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More on the Venture

The partnership will be spearheaded by Toyota, taking a massive 90% of the stake; the whole venture will also be dubbed as the EV Common Architecture Spirit, while Mazda and another company named Denso will each split the remaining 10% of the stake. The Swiss company has been the biggest supplier of the company in terms of aftermarket and in-house market; they also supply the auto giant with some accessories.

This will be another milestone for Toyota if all plans happen; in the past, the auto company introduced and brought us the hydrogen fuel cell vehicles. Just last year, in an attempt to join the electric vehicle market, the company introduced their new division which will be solely focusing on the development of electric vehicles.

Toyota’s Shares

After Toyota’s announcement, its shares skyrocketed and increase by a whopping 3 % before closing at a flat rate; this signals a great enthusiasm from investors and a well-received future plan. On the other hand, Denso’s shares were also up by a good 1.5%.

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