TOKYO: Japanese carmaker Toyota on Tuesday announced it will collaborate with US tech giant Microsoft to improve services for cars connected to the internet in the future.

The auto giant has set up a new company called Toyota Connected to create these services and develop products for drivers and distributors based on advanced cloud-based data analysis, EFE news reported.

Among the products under consideration are policies adapted to each driver, based on a study of their driving patterns.

The company, based in Texas and with an initial investment of around $5.5 million, is primarily owned by Toyota Media Service, a subsidiary of the Japanese group, and Microsoft, which has a 5 percent stake.

The company, which was founded by Bill Gates, had first invested in Toyota Media Service in 2011.

Toyota already sells internet-connected automobiles in Japan although they are limited to a few Lexus models and some other high-end models.

The firm aims to expand the number of cars with data communications systems for sale in the US and Japan initially.

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