Toyota admits fight for survival in world’s biggest EV market

Japanese automaker Toyota has announced plans to finally strengthen the pace of electrification as it seeks to “survive” in the Chinese car market, now the world’s biggest EV market.

Toyota is the world’s biggest automaker in terms of global sales, but it has consistently been losing market share in China, the world’s largest automotive market which is making a rapid shift to electric vehicles.

Local Chinese brands such as BYD have been accelerating the pace of their own electrification and, as a result, leaving global brands in their dust.

In the first quarter of the year, BYD sales were up by almost 69%, giving the company an 11% share of the overall car market – more than big-name global brands Volkswagen and Toyota, whose annual sales include a tiny fraction of EVs.

The reality for global brands is that EVs are increasing in demand in China, where local car brands are better able to deliver EVs that meet the needs of customers. Small EVs and electric car services such as leasing and battery swapping have meant many global car brands are not making car’s that the Chinese market wants.

“The Chinese market is growing at an unprecedented pace,” said Tatsuro Ueda, chief executive officer of the China Region for Toyota.

“Toyota will also work together as a group to reform how we work and think to survive in China.”

Toyota promised a range of initiatives including everything from renaming its largest R&D facility in China to IEM by Toyota and moving engineers from three existing Toyota R&D facilities to China to work on the IEM by Toyota-led development project.

Toyota will also strengthen local development of all its electrified vehicles in an effort to push forward its “multi-pathway-based carbon neutrality” – which is Toyota’s way of saying it continues to move forward with hybrids and hydrogen fuel-cell vehicles.

However, Toyota also promised that it will accelerate electric powertrain development in partnership with Denso and Aisin.

“By promoting local development with IEM by Toyota at its core, we will attempt to develop and provide competitive products that can satisfy Chinese customers at a fast pace,” said Ueda.

“Furthermore, we will look to share development results and lessons learned in China, not only within China, but also globally.”