The move is likely to help China in its goal to expand its tech capability, manufacturing and distribution channels and better compete in the world stage.
Toyota Motor Corp stated, it is in the midst of setting up a research institute in Beijing in partnership with Tsinghua University.
The partnership will study uses of car technology in the field of green technologies, including hydrogen power.
The move could ease environmental problems facing China.
The initiative was outlined by Toyota’s President and Chief Executive Akio Toyoda in a speech at Tsinghua University.
The development assumes significance since it is aimed at sharing more of its technologies with China, said a source close to Toyota.
“The Tsinghua-Toyota Joint Research Institute will conduct research into cars and new technology to solve environmental problems in China, including reducing traffic accidents”, said Toyota in a statement.
It went on to add, the institute will “cooperate in research not only related to cars for Chinese consumers, but also in research related to active utilization of hydrogen energy that can help solve China’s energy problems”.
The development is in line with Toyota’s earlier announcement this month that it would offer free accesss to its nearly 24,000 electric vehicle technologies patents to carmakers and suppliers across the globe.
Earlier this month, Toyota’s executive vice president Shigeki Terashi had mentioned that Toyota intends to become a tier 2 supplier of hybrid systems and that it had already received enquiries from more than 50 companies.