The companies are believed to be in advanced talks to share fuel-cell technology.

Toyota and Mazda are in talks regarding a partnership to focus on environmentally friendly fuel-cell vehicle technology due to regulators demanding a reduction in emissions from automakers.

The two Japanese manufacturers already have a technology and production partnership in place with certain vehicles using technologies from both companies. They are now looking at progressing their relationship and providing a technology and production tie-up for hybrid technology. According to the Nikkei business daily the two “intend to reach an accord in principle soon”.

As a part of the tie up, Toyota has proposed the use of its fuel-cell and plug-in hybrid technology to Mazda whilst Mazda would offer its Skyactiv green technology to Toyota, which it was planning to use for its line of fuel-efficient petrol and diesel vehicles.

Fuel-cell vehicles, or FCVs, are powered by electricity that is generated by combining hydrogen with oxygen, with only water vapour created as a byproduct, meaning no emissions.

Toyota believes that hydrogen FCVs are the best zero-emission alternative to conventional high emission vehicles due to the re-fuelling time and range.

It’s rumoured that the companies are also considering partnering in other areas such as Mazda’s purchasing of commercial vehicles from the Toyota group and procuring car parts together.

In 2010 the companies worked together when Toyota offered its hybrid vehicle technology and Mazda agreed to provide small compact cars from a Mexican plant to Toyota in 2012.

Toyota has already shared its 5,680 patents concerning fuel-cell technology to competitors for free. This is all in a bid to share the expensive development costs between automakers speeding up the development of fuel efficient technologies before stricter regulations are put in place.