By The South Asia Times

TOKYO -  Japan's Toyota Motor Corp. and U.S.-based Joby Aviation have agreed to establish a joint venture to manufacture electric aircraft, marking a significant step toward the commercial production of next-generation air taxis.

Toyota announced on Tuesday that the new company, Joby Toyota Aero Manufacturing Preparation Co., will be headquartered in California and will focus initially on laying the foundation for commercial-scale production of Joby's electric vertical takeoff and landing (eVTOL) aircraft, according to Kyodo News.

Under the agreement, Toyota will hold a 51 percent stake in the joint venture, while Joby Aviation will own the remaining 49 percent.

The two companies said the partnership will also support the expansion of Joby's manufacturing capacity as demand for electric aircraft is expected to grow in the coming years.

Toyota, the world's largest automaker by vehicle sales, said the collaboration combines its expertise in advanced manufacturing, production systems and quality control with Joby's innovations in electric aviation technology.

Joby Aviation, based in California, has been developing fully electric air taxis designed to carry passengers over short distances with lower noise and zero operating emissions. The aircraft take off and land vertically like helicopters but are intended to operate more efficiently and quietly, making them suitable for urban transportation.

Toyota has been a long-time investor and strategic partner of Joby, providing financial backing and manufacturing expertise as the startup works toward commercializing its eVTOL aircraft.

The new joint venture is expected to accelerate preparations for mass production as regulators and industry participants move closer to introducing commercial air taxi services in several markets.

The global advanced air mobility industry has attracted billions of dollars in investment in recent years as companies race to develop electric aircraft capable of easing urban congestion and reducing transport emissions. Major automakers, aerospace manufacturers and technology firms are increasingly investing in the sector, viewing electric air taxis as a potentially transformative mode of transportation over the next decade.

Toyota's latest agreement with Joby underscores the Japanese company's growing ambitions beyond traditional automobiles as it expands into emerging mobility technologies, including autonomous driving, hydrogen-powered vehicles and electric aviation.