Toyota Takes Flight: Strategic Investment in Joby Launches Air Taxi Venture

【PCauto】Recently, Toyota has completed its first $250 million investment (approximately RM1.18 billion) in Joby Aviation, an electric aircraft manufacturer, which means that Toyota has officially entered the field of air taxi.

This investment essentially implements the agreement between the two parties from October 2024. According to publicly disclosed information, this represents the first phase of investment, with Toyota committing to reach a total investment of $500 million (approximately RM2.36 billion) by 2026.

Toyota Becomes Joby's Largest Shareholder

After the investment, Toyota's shareholding ratio has risen to 18.7%, becoming Joby's largest shareholder. The partnership between Toyota and Joby dates back to 2020, when Toyota participated in Joby's C-round financing ($394 million), and they deepened cooperation by continuous board representation. In July 2023, Ted Ogawa, CEO of Toyota North America, joined the Joby board of directors, laying the groundwork for this latest investment.

Unlike ordinary financial investments, the two parties have already announced the establishment of a manufacturing alliance. Toyota will contribute its automotive expertise in three key areas to improve the ability of Joby's eVTOL (electric vertical takeoff and landing aircraft) to achieve mass production and cost control.

Joby will be integrated into Toyota's lean production system to reduce the costs of component procurement. Technologically, Joby will gain access to Toyota's lightweight battery patents and high-efficiency motor technology. Additionally, Toyota will assist Joby in redesigning airframe structures to improve production and assembly efficiency. Analysis by KrASIA predicts Toyota's manufacturing experience could reduce the production cost of each S4 aircraft by 22%.

This cooperation is already visible in Joby's S4 prototype, whose carbon fiber cabin incorporates Toyota Mirai's hydrogen fuel tank winding process, achieving a 12% weight reduction.

Joby's Stock Soars 29% Following Toyota Investment

The capital market responded strongly to this partnership. On the day of the announcement, Joby's stock price surged by 29%, marking its largest single-day gain this year. Investor confidence stems from Toyota's industrial endorsement significantly boosting Joby's commercial credibility, particularly as its competitor Archer Aviation has already secured purchase orders from United Airlines.

What's more critical is the acceleration of regulatory processes. Joby plans to obtain FAA airworthiness certification by 2025, and Toyota's funds will be directly used to establish a mass production quality inspection system that meets aviation standards, expand the flight test data collection team, and improve the emergency fault redundancy system. These investments are crucial for meeting the requirements of stringent aviation certification.

First Route to Launch in Los Angeles, USA

According to the development roadmap disclosed by Toyota and Joby, the first commercial route is planned to begin operations in Los Angeles by 2026. The initial pricing is expected to range between $6-8 per mile (approximately RM28-38), with the aim of suitable for high-end business scenarios.