Japan's Toyota Motor Corporation has chosen China as the first production site for its next-generation electric vehicles (EVs), marking a departure from its traditional practice of developing and manufacturing new cars in Japan before launching them globally. This shift comes as China, which accounts for 60% of global EV sales, has emerged as a key player in electric vehicle technology and new car development.
According to the Nihon Keizai Shimbun (Nikkei) on August 28, Toyota plans to start production of its next-generation electric SUV under the luxury Lexus brand at a new plant in Shanghai in the fall of 2027. In the first year, the plant is expected to produce around 1,000 units per month, with plans to ramp up to tens of thousands annually after 2028.
The new model will be the first Toyota vehicle to incorporate 'gigacast' components, a technology that allows multiple body parts to be cast in aluminum in a single process. This innovation is expected to reduce the weight of certain body parts by up to 20% and increase the driving range by several percentage points on a single charge. Additionally, the rigidity of the body will improve, and the reduction in assembly processes will enhance production speed.
It is unusual for Toyota to mass-produce a new car with advanced technology overseas from the outset. Historically, the company has developed and manufactured hybrid vehicles like the Prius and hydrogen fuel cell vehicles like the Mirai in Japan before expanding sales in Japan and the United States to penetrate global markets.
This change in strategy is driven by the shift of the EV competition center to China. According to the market research firm GlobalData, China's EV sales reached 8.57 million units last year, accounting for 60% of global sales, which is nearly three times that of Europe and over 100 times that of Japan. China's EV sales are projected to rise to 11.41 million units by 2030. While the EV markets in Japan, Europe, and the United States face headwinds, Nikkei forecasts that the global market will expand in the medium to long term, indicating that China has become a pivotal region in determining the future of the global automotive market.
Vehicle designs are also being tailored to meet Chinese consumer demand. Initially, Toyota was developing a low-slung, streamlined coupe-style next-generation EV in Japan but halted that project this spring due to strong demand for SUV-style EVs in China. BYD, China's largest electric vehicle manufacturer, also launched a new large SUV in June, intensifying competition in the SUV market.
Toyota is implementing a 'multi-pathway' strategy that adapts vehicle types to regional demands. In Japan and the United States, the focus remains on hybrid and gasoline vehicles, while in China, the emphasis is on electric vehicles. The company has already introduced budget-friendly SUVs and models equipped with Huawei's vehicle display technology in the Chinese market. The addition of the next-generation Lexus EV aims to broaden its product range from budget to premium offerings.
Furthermore, the vehicle development approach is evolving to match the speed of Chinese manufacturers. While traditional automakers typically take four to five years to develop a new model, emerging Chinese EV companies are launching new vehicles in about two years. Nissan has decided to cut its new car development period to 26 months, half of the usual time, while Volkswagen plans to collaborate with Chinese EV firms to launch up to 50 new energy vehicles, including EVs, by 2030. Nikkei points out that the rapid adoption of advanced technology and the acceleration of development speed characteristic of the Chinese model are becoming essential. Toyota's decision to produce its next-generation EVs in China first appears to stem from this assessment.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.