In order to gain auto tech expertise, Toyota Motor Corp may consider acquisitions and mergers. Self-driving technology remains a priority for the company as it now planning to compete more aggressively against other players. Toyota is one of the largest automaker is the world, however compared to its rivals, the company has been slow to investing in electric vehicles (EVs) and autonomous cars. Therefore, the company is now looking to explore into these spaces and move to advanced segments, realizing the massive scope in them. Undoubtedly, the auto industry is experiencing immense changes with the arrival of new ideas and development of modern needs that the company was unable to assess until now.
The company has now however is giving positive indications and is will to change according to the tides. Reportedly, the company yearly invests around 1 trillion yen ($9.08 billion) in its R&D program and has been expanding capital expenditure and purchasing back shares. Nevertheless, some may consider it too late, too little as some of its rivals are already into advanced stages, putting them in a far better position for tapping the future opportunities. Toyota still finds itself in the initial stages of developing next-generation auto technology and hence needs to consider all its option, including meager and acquisition for it long-term sustenance. As the emergence of autonomous technology brings the auto industry and tech industry closer than ever before, global auto companies are seeking to expand their capabilities beyond just manufacturing cars. Many of these companies are now focusing on transportation service providing business and even collaborating with technology firms for the same.
Toyota reportedly has splashed nearly $1 billion in an artificial intelligence (AI) research institute and has also partnered with Uber Technologies and Microsoft Corp. The company has also opened new divisions outside its group suppliers, which include Nvidia Corp a prominent tech firm in attempt to procure more software solution for its self-driving systems. Moreover, the carmaker is planning to introduce a self-drive vehicle capable of driving itself on highways. Nisan Motor Co, its domestic rival is also planning to launce such cars in the same year that will be able to self-drive without any human intervention. Similarly, General Motors Co has reportedly set up a facility to mass-produce autonomous test vehicles. GM has also stroke a deal with the U.S. self-driving technology firm Cruise as well as partnered with ride hailing firm Lyft.