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By 1998, Toyota had increased its stake to 51.2%, and by 2016, Daihatsu was fully absorbed into Toyota’s fold. But that’s not all.
For Toyota, the deal with Honda helps justify its $14 billion U.S. battery investment. For Honda, it’s a way to avoid price hikes and maintain competitiveness in a rapidly changing market.
According to Reuters, from the coming fiscal year, Honda will take in Toyota’s US-made batteries for about 400,000 vehicles, which will be enough for all of its hybrid cars it sells in the country.
Honda’s electrified vehicles, including EVs and hybrids, accounted for over a quarter of US sales last year. The company sold over 308,500 hybrids and 40,400 electric vehicles in the US in 2024.
Beginning in fiscal 2025, Toyota will supply batteries for Honda’s hybrid vehicles sold in the U.S., an agreement that could cover approximately 400,000 vehicles per year, according to Nikkei.