Exclusive: Toyota sells electric vehicle technology to Chinese startup Singulato

BEIJING (Reuters) – Toyota Motor Corp. has agreed to sell Singulato its electric car technology, its first contract with a Chinese start-up specializing in the production of electric vehicles.

In return, Toyota will receive preferential rights to purchase "green car" credits that Singulato will generate under China's new quota system for all-electric and plug-in hybrid vehicles.

It will also provide insight into how Chinese startups and their strategies work in a rapidly changing market, said Singulato CEO Shen Haiyin and two sources from the Japanese automaker.

"With electrification, autonomous driving and carpooling that upset the area, it's necessary to revisit the old ways," said one of Toyota's sources, not wanting to be identified as it's not going to be identified. He was not allowed to express himself.

"We have been at the forefront of automotive technology for a century, but we must also be humble enough to learn from newcomers."

Singulato will get a license to use the design of Toyota's eQ, a battery-powered electric microcar. The agreement is expected to be announced Tuesday at the Shanghai Motor Show, where Singulato will unveil a concept car based on the eQ.

Singulato plans to rethink the car, adapting it to local tastes, to offer a more affordable model by 2021 and offering longer battery life.

"This deal saves us the time and money to develop a reliable car and focus on what we excel at," Shen told Reuters.

Financial conditions should not be disclosed. A source from Singulato said the start-up had agreed to pay "tens of millions of dollars" for the design of eQ.

Toyota said it is taking a number of steps to accelerate its operations in China, a key market, without commenting on specific milestones.

The deal is Toyota's vote of confidence in Singulato's prospects, Shen said. Founded in 2014 and supported by Intel Corp and the Japanese trading house Itochu Corp, Singulato is one of at least 50 Chinese startups seeking to survive in a competitive market.

It plans to sell its first self-developed battery-powered electric car called iS6 this year, competing with rival startup models such as Nio and WM Motor, as well as those of global automakers.

WILLING TO SHARE

The Singulato version of the eQ will be a so-called connected car offering young buyers a multitude of entertainment, security and navigation features. The car, which will be called the iC3, will also be equipped with an autonomous driving technology.

Toyota sold about 100 QE cars in 2012 and abandoned it due to concerns about the limits of electric vehicles, including their high prices, reduced battery life and extended charge time. But Singulato thinks that technological advances, especially in batteries, have made the car much more marketable.

Shen said the iC3 should be able to travel a distance of 250 to 300 km (160 to 190 miles) with a single full charge and will cost about 100,000 yuan ($ 15,000). Singulato aims to sell 200,000 units over five years.

According to Toyota's two sources, the agreement is part of efforts to share more technologies with China, the Japanese automaker wanting more growth in the world's largest automotive market by strengthening its manufacturing capabilities and manufacturing channels. distribution.

Green car credits will also be useful.

Anxious to fight smog, revive its own auto sector and reduce reliance on imported oil, China is resolutely adopting electric cars. As part of a production quota system taking effect this year, car manufacturers are required to produce and sell a number of new energy vehicles in proportion to the total volume of their sales.

A car manufacturer that does not meet its quota will have to earn NEV points from a manufacturer with excess credits or will be exposed to penalties.

Toyota said that at first, it could not meet its quotas without buying credits from others. He also agreed to produce and help sell a car for GAC Motor, a joint venture partner, to generate credits.

According to Toyota sources, the agreement with Singulato has already cast a fascinating look at the thinking of Chinese startups on electric vehicles and their non-traditional approach to engineering.

Singulato had the idea to connect the headlights to the satellite, to the location data of the cellular network and to the planned conduct of the driver. This could help turn on the headlights along the driver's road to improve driving visibility and safety.

It may not be something that Toyota would consider, but as an idea, "it was revealing," said one source.