Automakers Toyota and BMW have struck a partnership to share eco-friendly technologies,

Automakers Toyota and BMW have struck a partnership to share eco-friendly technologies, including in the joint development of lithium-ion batteries for next-generation electric cars, the companies said.

Under the deal, the German automaker will also provide diesel engines for Toyota as the Japanese auto giant looks to boost sales in Europe, where more than half of passenger cars are diesel powered.

Toyota has struggled to boost its European market share with its gasoline-electric hybrid vehicles, despite its leading position in the low-emission technology.

Meanwhile, the pair will share development costs for batteries for electric cars as part of plans to roll out battery-powered vehicles.

“Toyota Motor Europe (TME), Toyota Motor Corp.’s European subsidiary, and BMW have entered into a contract under which BMW is to supply 1.6 litre and 2.0 litre diesel engines to TME starting in 2014,” they said in a statement.

Demand for lower-emission diesel vehicles is forecast to grow, with further technological advances in the field seen as crucial due to toughening vehicle emissions standards.

Their pact comes after Toyota struck a deal in August to develop hybrid-vehicle systems with US-based Ford, while BMW inked a deal with France’s PSA Peugeot Citroen Group to jointly develop hybrid systems for subcompacts.

Their pact comes after Toyota struck a deal in August to develop hybrid-vehicle systems with US-based Ford, while BMW inked a deal with France’s PSA Peugeot Citroen Group to jointly develop hybrid systems for subcompacts.

Source Reuters