Toyota Motor Corp. and Sony Corp. are jointly developing a vehicle aimed at showcasing the companies' information technology.
The companies may unveil the car at the Tokyo Motor Show in October, company sources said Tuesday.
Toyota and Sony plan to exchange technological knowhow to create a "dream car," with plans to manufacture it, the sources said.
Engineers from the two firms are working together on creating the car, which the companies may exhibit at the Tokyo Motor Show as a jointly-produced concept car. the sources added.
Toyota competitor DaimlerChrysler AG has already successfully developed a compact car in cooperation with Swiss watchmaker Swatch Group.
Toyota and Sony have been cooperating in the auto parts business. and have jointly invested in ventures related to electronic money and the Internet.
Toyota has also developed a new fuel-efficient compact car, which it plans to exhibit at the Tokyo Motor Show. Combining a lightweight aluminum body and a gasoline-electric hybrid power plant, the car has an estimated fuel efficiency of 50 km per liter, Toyota sources said.