TOYOTA Motor Corp. has agreed to sell electric car technology to Singulato, its first deal with a Chinese electric vehicle startup, allowing the fledgling firm to speed up development of a planned mini electric vehicle (EV).

In return, Toyota will have 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 gain a bird’s-eye view into how Chinese EV startups operate and the strategies they pursue in a fast-changing marketplace, said Singulato chief executive Shen Haiyin and two sources at the Japanese automaker.

“With electrification, autonomous driving and car sharing shaking up the industry, old ways need to be re-examined,” one of the Toyota sources said.

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

Singulato will acquire a license to use the design of Toyota’s eQ — a battery electric microcar. The deal was announced yesterday at the Shanghai auto show, where Singulato will unveil a concept car based on the eQ.

Singulato plans to redesign the car, tailoring it to local tastes to come up with a model by early 2021 that is more affordable and offers a longer driving range.

“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 said it was taking various measures to accelerate its business in China, a key market, but it would not comment on specific steps.(SD-Agencies)