Chinese car manufacturer BYD and Toyota announced on Friday that they have signed an agreement to develop electric vehicles expected to hit China's market under the Toyota brand by 2025.

The vehicles will include sedans, low-floor SUVs, while the onboard batteries for these vehicles will also be produced under the teams of the deal. 

The two manufacturers have said there is a need to set aside their rivalry and start collaborating with the goal of curbing global warming and reducing CO2 emissions by promoting the widespread use of electric vehicles.

Sales in China's new-energy vehicle market have increased in the first half of this year, up 48 percent from the same period a year ago to 614,000 units.

The country's overall auto sales suffered a year-on-year fall of 12.4 percent in the first six months, according to the China Association of Automobile Manufacturers.