Toyota to boost EV development and technology in China

It said it would strengthen development of its full suite of electrified cars, not just battery-powered ones. Unlike some other automakers, Toyota is betting that hybrids and plug-in hybrids will continue to see robust demand. It is also investing in the development of hydrogen fuel-cell cars.

It sees this “multi-pathway” approach of different kinds of electrified cars as a better fit for markets that aren’t ready for only battery electrics.

The automaker will also have engineers from three joint ventures – with FAW Group, Guangzhou Automobile Group (GAC) and BYD – work together on a project basis at its biggest R&D facility in China.

It did not say how many engineers that would involve, although a spokesperson said their focus would be on electrification and intelligence.

Toyota, which has seen its China sales including of its luxury Lexus brand slip 2.8 percent to about 879,000 units in the first half of the year, said it would aim to significantly reduce manufacturing costs, including through developing a local supplier base, to become more competitive.

Toyota has also slowed production at a joint-venture plant that makes its bZ4X EV and laid off 1,000 contract workers earlier this month.

The move to step up electric technology development comes after some of the leading global automakers recently tweaked the way they are developing cars in China.

German luxury brand BMW earlier this month boosted investment in product development in China with a new R&D hub in Shanghai that will develop EVs to be sold globally.

Volkswagen unveiled a partnership with China’s Xpeng Inc. to make two new models from 2026 featuring Xpeng’s software, and plans to jointly develop Audi models and a new platform with its Chinese partner SAIC.