NAGOYA: Toyota Motor Corp. and Nippon Telegraph and Telephone Corp. will form a capital and business alliance, it was learned Tuesday.

The two companies are expected to work together on a smart city project, informed sources said.

They are considering acquiring an equity stake of 200 billion yen in each other, the sources said.

The alliance between the leaders in their respective industries in Japan is aimed at accelerating efforts to construct smart cities that utilize cutting-edge telecommunications technologies.

In January, Toyota unveiled a plan to construct a prototype city at a plant site in Susono in Shizuoka Prefecture, central Japan, that will utilize autonomous driving technology, artificial intelligence and robots and connect home appliances and housing equipment through the internet.

Toyota has highlighted its focus on developing smart cities by mobilizing all of its management resources.

JIJI Press