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.

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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.