Panasonic and Toyota concluded today contracts aimed toward the establishment of a new joint venture to develop “connected” services to be used in homes and urban development.

The tie-up deepens the partnership between the companies, which in January announced a joint venture to build electric-vehicle (EV) batteries, pooling the R&D and manufacturing strengths of one of the world’s largest automakers and battery makers to compete in the fast-growing EV market.

In their latest venture, Toyota and Panasonic said they will set up a new company early next year to focus on technology that could be used to offer personalized services in the home. The pair plan to be 50-50 partners in the new firm and will increase cooperation at their respective housing operations in Japan.

In the housing business, the two companies will reinforce the foundation of their business through the integration of their respective housing businesses.

In the town development business, Panasonic, together with various companies, has led the development of sustainable smart towns (SST) as advanced models of town development. Meanwhile, Toyota has been proceeding with the construction of a "mobility service platform" (MSPF) while enhancing the development of "connected cars." In addition, Toyota has also been collaborating with various domestic and overseas companies to create new mobility services. Through the establishment of the joint venture, both companies are committed to contributing to the realization of more attractive towns, making use of Panasonic's knowledge and digital technology related to living, and Toyota's expertise in mobility.

Kazuhiro Tsuga, President of Panasonic, said: "In the future, in addition to hardware, the provision of improved services supported by technology will assume a more important role in town development that provides value for customers and the local community. Toyota has been leading the mobility field, and Panasonic has long been serving lifestyle needs of people. We will put our respective strengths together to offer new value in everyday life. Through this collaboration, Panasonic will further challenge itself to continue advancement in the town development business, aiming to deliver the 'ideal lifestyle' for each customer."