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Asia Times
05-05-2025
- Automotive
- Asia Times
Japanese auto giants know they need China to survive
Japanese automakers are attempting to make a comeback in China with their local joint venture partners and Chinese suppliers of smart cockpit and self-driving technology. With their combined market share in China down from 24.1% in 2020 to 13.7% in 2024, according to the China Passenger Cars Association, this is perhaps their last chance. As General Manager Li Hui of Toyota China put it at the Auto Shanghai 2025 trade show, 'To deliver cars people want in China, we need Chinese brains and hands involved in development.' Appointed earlier this year, Li is the first Chinese general manager of Toyota China. Even if US President Donald Trump's tariffs were not disrupting their business in North America, the Japanese could not afford to be driven out of the world's largest and most dynamic auto market. More than 31 million new vehicles were sold in China in 2024, according to the Chinese Association of Automobile Manufacturers, of which nearly 13 million were NEVs (New Energy Vehicles, including battery-powered, hybrid and fuel cell vehicles). In comparison, nearly 16 million new vehicles were sold in the US, of which about 3.2 million were NEVs. Auto Shanghai 2025, the 21st iteration of the exhibition, was held from April 23 to May 2. Organized by the Council for the Promotion of International Trade, Shanghai, and the China Association of Automobile Manufacturers, the event reportedly attracted nearly 1,000 auto, auto parts and other auto supply chain companies from 26 countries and regions. The exhibition, where 1,366 vehicles were on display, of which 70% were NEVs, drew one million visitors. Car and Driver magazine noted that 'While auto shows have slowly been withering away in the United States, with fewer and fewer in-person reveals each year, the car show is thriving in China.' MotorTrend wrote: 'Back in the '50s Americans used to go to GM's Motorama shows to get a glimpse of the future, gasping in awe at fully functional concept cars like the turbine-powered, titanium-bodied Firebird III and exhibits that showed autonomous driving technologies. Fast forward seven decades and the world comes to China to see the future arriving in real time.' Hoping to be a part of that future, Japanese automakers presented several new vehicles in Shanghai. Toyota launched an electric sedan, the bZ7, which was developed by Guangzhou Automobile Group (GAC), Guangzhou Toyota Motor and Toyota China Co's Intelligent ElectroMobility R&D Center. Significantly, the bZ7 is equipped with Huawei's HarmonyOS cockpit system. At the exhibit, Toyota's Li spoke about the company's 'One R&D system and Region Chief Engineer approach' to product development in China, which he said 'integrates resources from the Intelligent ElectroMobility R&D Center by Toyota (China), FAW Toyota, GAC Toyota and its joint venture with BYD into a unified platform, enhancing collaboration with local Chinese suppliers and technology firms…' Toyota also unveiled its latest Lexus ES luxury sedan, which comes in both hybrid and, for the first time, pure battery-powered versions. Honda presented the GAC Honda GT and Dongfeng Honda GT, the second set of 'Ye Series' electric vehicles developed specifically for China. These and other Ye Series cars will use AI technology from DeepSeek to enhance the in-vehicle experience. Nissan presented an electric sedan, the N7, made by Dongfeng Nissan, and a plug-in hybrid pickup, the Frontier Pro, designed and produced by affiliated Zhengzhou Nissan. The N7 is equipped with Momenta's Advanced Driver Assistance System (ADAS). Toyota and Honda also work with Momenta, a Chinese developer of assisted driving technologies that are also used by Volkswagen, Mercedes Benz and GM. Among Chinese automakers, Momenta works with BYD, GAC and SAIC. Momenta's shareholders include SAIC, Toyota and Daimler (Mercedes-Benz). Momenta founder and CEO Cao Xudong said at the exhibit that, 'We are the first Chinese company that has successfully deployed assisted driving technologies, such as highway and city navigation features, across multiple countries worldwide, including Germany, France, and Japan.' Momenta has offices in Stuttgart and Toyota City. Mazda unveiled the new EZ-60 electric SUV developed by Changan Mazda, its joint venture with Chongqing Changan Automobile Co. Sony attended the event for the first time, targeting the Chinese in-car entertainment market. German makers are taking a similar approach to the Japanese. On the evening of April 22, the day before the start of the show, Volkswagen announced what it calls 'the next generation of intelligent, fully connected vehicles (ICV).' The company said on its website that, 'Auto Shanghai 2025 marks the beginning of the Volkswagen Group's largest ICV-offensive in China to date. By 2027, the Group will launch more than 20 fully electric and electrified models (NEV) as part of a comprehensive product offensive. By 2030, the Group's brands will offer around 30 all-electric models.' German auto parts, software and services provider Bosch signed a technology cooperation agreement with Chinese automotive AI and ADAS developer Horizon Robotics. Bosch also announced its first order in China for in-vehicle AI computers for vehicle cockpits. Christopher Hartung, president of Bosch Cross-Domain Computing Solutions, told the Chinese press that 'We look forward to collaborating with outstanding partners like Horizon Robotics to jointly advance the global development of intelligent driving technologies.' Like their Japanese competitors, German automakers' share of the Chinese market is now about 13%, according to MarkLines. And like the Japanese, they are seeking ways to bounce back after losing share to local automakers. As the CEO of German auto parts and systems supplier ZF put it, 'If you stop investing here, you get left behind.' The Japanese and Germans should be able to maintain a significant share of China's auto market. The same cannot be said for the Koreans (Hyundai Motor, its affiliate Kia and premium brand Galaxy), whose share has dropped below 2%. Led by General Motors (GM), the Americans have about 9% of China's market, including through their local joint ventures. Tesla accounts for only 2% of total auto sales in China and about 5% of NEV sales. Follow this writer on X: @ScottFo83517667
Yahoo
04-05-2025
- Automotive
- Yahoo
Toyota's Exciting New EVs are Coming, but There's a Catch
By mid-2026, Toyota will be making its first deliveries of the bZ7 and Lexus ES sedans, bringing high-end electrification to those who pre-ordered and the select few who might be lucky enough to snag one from a dealership lot. Both sound like incredible vehicles, and Toyota is making a push to regain market share by going a bit more high-end than it usually does. These sibling Toyota vehicles are set to challenge the Tesla Model S and other high-end sedans, showing that Toyota is eager to pursue electrification beyond collaborations with Subaru. The issue for American buyers is that these two new Toyota vehicles are only available in China, not the United States. View the 5 images of this gallery on the original article Though Toyota didn't divulge much about the bZ7 at the Shanghai Auto Show, where the vehicle debuted, we do know it will be 'equipped with the latest intelligent technology' and serve as Toyota's flagship vehicle for the Chinese market. At over 5 meters long, the Toyota bZ7 was developed by Guangzhou Automobile Group (GAC), Guangzhou Toyota Motor Company (GTMC), and the Intelligent ElectroMobility R&D Center by TOYOTA. Aesthetically, the bZ7 is reminiscent of a more luxurious Toyota Crown. Toyota's lightbar sweeps across the front and blurs the line between hatchback and sedan in the rear. The bZ7 has aggressive, linear body lines down its sides and a decidedly svelte interior with bold linear lines traced by the interior lighting panels. Toyota had much more to say about the Lexus ES, which will be available in BEV (fully electrified) and HEV (hybrid) variants. Now in its eighth generation, the incoming ES interior will have what Toyota calls responsive hidden switches, which 'seamlessly blend physical controls into the interior' to keep the interior minimal without hiding settings behind a screen. A new Sensory Concierge will personalize your in-car experience via bespoke illumination, climate control, and fragrance dispersion. The BEV ES will be offered in FWB and AWD configurations, earning you 685 kilometers (425 miles) and 610 kilometers (379 miles), respectively. Depending on outside air temperature, Toyota says the ES can charge from 10 percent to 80 percent in 30-60 minutes. The HEV will be offered in FWD and AWD as well, with the option of a 2.0-liter or 2.5-liter four-cylinder this year, Toyota debuted the bZ3X SUV to much fanfare, selling over 10,000 pre-orders in under an hour. Toyota also has the bZ3 sedan and bZ5 crossover for China and the bZ4X, which it released globally. The Lexus ES trails the RZ and UX into the Chinese market for Toyota. This provides Toyota with an aggressive lineup of EVs and hybrids for buyers in China, all feature-packed vehicles priced aggressively. Toyota isn't saying it's worried about Chinese upstart EV automaker BYD, but it clearly is. Its lineup for China is impressive, and those with pricing - pricing for the bZ7 and Lexus ES wasn't revealed - are priced to move quickly. And if the bZ3X is any indication, BYD should be worried about Toyota.
Yomiuri Shimbun
28-04-2025
- Automotive
- Yomiuri Shimbun
Japanese Automakers to Incorporate Latest Chinese Technology into EVs; Using Chinese Talent for Chinese Market
The Yomiuri Shimbun Toyota Motor Corp.'s new EV model 'bZ7,' equipped with Huawei's operating system, is seen at Auto Shanghai in Shanghai on Thursday. BEIJING/SHANGHAI — Japanese automakers announced plans to introduce the latest Chinese technologies into their models at the Auto Shanghai motor show held in Shanghai, aiming to regain lost ground in China where electric vehicles (EVs) are rapidly becoming the norm. On Wednesday, Toyota Motor Corp. announced its new 'bZ7' electric vehicle (EV) will be equipped with an operating system from Chinese company Huawei. Toyota is developing the new model with an aim to launch it within a year. The automaker also unveiled a plan to appoint young Chinese people to chief engineer positions in charge of developing models for the Chinese market. 'To deliver cars people want in China, we need Chinese brains and hands involved in development,' said Li Hui, the general manager of Toyota China. In China, new car sales by major Japanese automakers declined in 2024 from the previous year, with Toyota decreasing by 6.9%, Nissan Motor Co. by 12.2% and Honda Motor Co. by 30.9%. According to the China Passenger Cars Association, the market share of Japanese automakers in China fell from 24.1% in 2020 to 13.7% in 2024. There are several factors for the decline, such as a delay in developing and launching new energy vehicles (NEVs) such as EVs and plug-in hybrid vehicles (PHVs) in China where competition is intense among major automakers like BYD and startup companies. Additionally, Chinese people have tended toward spending less due to economic downturn. 'It seems to me that Japanese automakers are not really serious about NEVs. Their vehicles lack innovation,' a 24-year-old self-employed man from Shanghai said while looking at Japanese vehicles on display. In order to regain lost ground in China, the world's largest car sales market, Toyota and other Japanese automakers are adopting strategies to utilize Chinese talent and technologies. Honda announced it would adopt the artificial intelligence (AI) technology of Chinese tech startup DeepSeek to develop models for China while it also unveiled a plan to codevelop driver assistance technology with another China-based startup company. They plan to develop technology capable of operating the vehicle in heavily congested areas of Chinese cities, according to Honda. Nissan announced it will make an additional research and development investment of 10 billion yuan (about ¥200 billion) in China by the end of 2026. 'We redefined our strategy for the Chinese market where a major shift toward NEVs is taking place,' Isao Sekiguchi, managing director of Dongfeng Nissan Passenger Vehicle Co., Nissan's joint venture in China, said to reporters, suggesting the company will speed up efforts to develop new models in China. The Yomiuri Shimbun Nissan Motor Co.'s PHV pickup truck 'Frontier Pro' at Auto Shanghai in Shanghai on Wednesday PHVs may be the key to success. According to the China Association of Automobile Manufacturers, new PHV sales including exports in 2024 increased by 83% from the previous year to 5.14 million units. The rate of increase exceeded that of EVs at 15%, while 7.71 million EVs were sold in 2024. EVs are now mainstream in urban areas, while people in regional areas apparently prefer PHVs because they use both gasoline and electricity and pose less concern about travel range. Nissan will launch its first PHV pickup truck 'Frontier Pro' before the end of this year. Mazda Motor Corp. announced that its new model 'EZ-60' will be available in both EV and PHV models. 'China is the world's most advanced electrification and smartization market. It is important to focus on partnering with Chinese companies in order to respond to market demand,' a senior official at a Japanese automaker said.
Yahoo
25-04-2025
- Automotive
- Yahoo
China Will Get Toyota's Flagship EV Sedan, but Will the US?
Toyota reveals bZ7 electric sedan at Auto Shanghai, previewing a production model that will go on sale in China within a year. The bZ7 is built in a joint venture with Chinese automaker Guangzhou Automobile Group Co. Ltd., better known as GAC, and is aimed solely at the Chinese domestic market for now. Toyota has shown concepts and renderings of electric sedans over the past five years, but so far this has not translated into an impending model for the US market. The US is understood to be some time away from seeing an electric Toyota sedan, especially one aimed directly at the Tesla Model 3 or a segment just above it. But such a model now appears to be relatively close to a sales debut in China. And it's not even the first electric sedan Toyota has revealed in the country in the past three years. Toyota used the Shanghai auto show to take the wraps off the bZ7 sedan, developed with Guangzhou Automobile Group Co. Ltd., better known as GAC. The Japanese automaker says the model, which is over 196 inches in length, will go on sale in China within a year, but did not share any powertrain or range details. The sedan's design, developed along with Toyota's local partners, isn't much of a surprise, rather translating the styling cues of the existing bZ models to a Crown-sized sedan, or something close to it in size. One curious detail is that Toyota is calling the bZ7 the "flagship model" of its lineup in China, which signals that a full-size executive model isn't in the cards, at least for that particular region. Among other things, it's easy to get the impression that the US isn't exactly the first, second, or even third most important EV market for Toyota at the moment, which has already rolled out the bZ4X, bZ3, bZ3X, and the bZ5 in other regions, while the US has only received the bZ4X. "China is a highly advanced market that leads the way in electrification, with BEVs accounting for a high proportion of new car sales," the automaker explained. Just how close is the US to receiving an electric sedan from Toyota? Plans for an electric sedan offering in the US are not imminent to a degree where we can even point to a recent concept or an expected launch year, even though Toyota has certainly shown a handful of concepts in the past five years. In 2021 the automaker revealed a vast variety of electric concepts, and you can even spot the bZ7 in those photos from four years ago quite easily. But by 2025 perhaps it's safe to conclude that some of these planned models have been pushed to the back burner. We suspect that, among other things, an electric sedan would most likely have to be built in the US if the automaker were to offer it here, given the rapidly evolving tariff landscape, and that the annual sales volume of midsize electric sedans in general would also have to be north of where it is today to interest Toyota. Like other automakers, Toyota hasn't rushed to challenge the two Tesla sedans directly or indirectly in North America. And to be fair, sedans close in size to the Model 3 produced by Polestar, Mercedes-Benz, and BMW aren't exactly inundating their dealers with orders. There is no shortage of larger electric sedans on offer in the US at the moment, but there is a shortage of electric sedans the size of a Corolla. So if Toyota were to enter a particular segment, there are certainly greener pastures in segments well below the Crown, and the bZ3 already occupies one of them. Perhaps the most realistic estimate of Toyota's current EV plans for the US is that the bZ7 or a similarly sized electric model is not expected to go on sale in the US in 2026 or 2027. If there is any consolation, the three-row bZ5X SUV is still expected to go on sale in the US in 2026 and will be produced here as well. Should Toyota offer a Crown-sized electric sedan in the US before 2030, or is the current demand for such a model readily met by rivals? Let us know what you think in the comments below.
Yahoo
25-04-2025
- Automotive
- Yahoo
Toyota unveils all-new bZ7 sedan, Lexus ES range at Auto Shanghai
Toyota Motor Corporation unveiled its all-new bZ7 battery-powered flagship sedan at the Auto Shanghai 2025 show this week, which it aims to put into production next year. The Japanese automaker said the new bZ7 executive sedan, which measures 5 metres in length, was developed jointly by Guangzhou Automobile Group Company Ltd, its Guangzhou Toyota Motor Company joint venture, and the Intelligent ElectroMobility R&D Center owned by its subsidiary Toyota China Company Ltd. Toyota said the bZ7 was developed by combining the strengths of each company, including Toyota's safety, reliability and high-quality manufacturing, with China's advanced technologies. It will be equipped with the latest intelligent technologies, including smart cockpits, driver support, and advanced safety features. Toyota said it will 'proceed with development of the bZ7 toward commercialization within a year.' Toyota also introduced its next-generation Lexus ES range at Auto Shanghai 2025, which will be available with battery-powered (BEV) and hybrid-electric vehicle (HEV) models. The automaker said the new ES range embodies the new Lexus design inspired by the next-generation BEV concept LF-ZC, which it says has been refined to 'further evolve its quietness and ride comfort with electrification technology.' The ES range comes with a 'spacious rear seat package' and the latest technologies to provide a high-quality and comfortable interior experience for all passengers. "Toyota unveils all-new bZ7 sedan, Lexus ES range at Auto Shanghai" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
