(Bloomberg) -- Toyota Motor Corp. will inject $600 million into Didi Chuxing and help the Chinese company set up a car fleet management venture, bankrolling the loss-making ride-hailing giant's expansion.
The Japanese auto-maker will work with Didi to provide services including rental and car maintenance. Toyota will use its connected-car technology and intelligent analysis to help bolster Didi's business, the partners said in a statement.
Toyota is investing in a company that has endured a series of setbacks over the past year. Government curbs have severely hampered its car supply, and the murder of two female passengers triggered the suspension of some of its most lucrative businesses. Some investors have questioned whether the company would ever turn a profit. Still, Didi is keen on expanding into Latin America, while exploring new avenues in vehicle financing and car maintenance.
Toyota will help develop technology to monitor the state of automobiles and make them safer. Their partnership builds on an alliance Didi started last year with a coterie of carmakers including China FAW Group, Dongfeng Motor Group and Volkswagen AG, to create an open platform focusing on research into new energy and artificial intelligence.
To contact the reporter on this story: Lulu Yilun Chen in Hong Kong at ychen447@bloomberg.net
To contact the editors responsible for this story: Peter Elstrom at pelstrom@bloomberg.net, Edwin Chan
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