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As Japanese automakers fall behind in the surging Chinese EV market, Toyota looks to turn things around. Toyota announced Monday it will boost local development of tech and software in China to produce “electrified vehicles that are competitive” where EVs are taking over the market.

Toyota boosts local EV development in China

A market once dominated by foreign automakers like Toyota and Volkswagen, China is now seeing an unprecedented surge in domestically built EVs.

On top of this, price cuts from the nation’s top EV makers, like BYD and Tesla, continue putting more pressure on other automakers.

To catch up, Toyota’s new plans call for accelerating local design and development of smart cockpits to enhance the driving experience with modern interior designs and built-in AI, something buyers in China are gravitating toward.

Toyota is also working with its top suppliers, Denso and Aisin, to speed up electric powertrain development.

The move comes after a report from Reuters claimed Toyota’s joint venture in the region with China’s GAC was laying off workers last week.

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Toyota bZ3 electric sedan (Source: FAW-Toyota)

Toyota also plans to significantly reduce manufacturing costs through three initiatives. These include developing a local supplier base, reviewing parts designs, and reforming production and manufacturing to regain competitiveness.

CEO of Toyota China, Tatsuro Ueda, commented on the situation, saying:

The Chinese market is growing at an unprecedented pace. Toyota will also work together as a group to reform how we work & think to survive in China. 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.

Meanwhile, the automaker is sticking to its “multi-pathway” approach, which includes EVs, PHEVs, HEV, and FCEVs.

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Toyota concept EVs (Source: Toyota)

Electric vehicle urgency reaches Japan

Newly elected CEO Koji Sato stated during an interview after taking over in April, “We need to increase our speed and efforts to firmly meet the customer expectations in the Chinese market.”

Toyota already slashed prices on its first electric SUV in the region, the bZ4X, earlier this year. On top of this, the automaker issued a recall (over 12K units) for its first electric sedan, the BYD-powered bZ3, over defective door handles.

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Toyota bZ4X (Source: Toyota)

The automaker has already revealed plans to advance new EV technologies, including Giga casting to reduce manufacturing complexity, self-propelled production lines, hypersonic rocket tech to enhance efficiency, and next-gen batteries that will boost range while cutting costs.

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Giga cast (Source: Toyota)

Toyota plans to have engineers from its three joint ventures in China, BYD, FAW, and GAC, work on a “Toyota-led development project.”

Electrek’s Take

Japanese automakers, who have been slow to adopt purely electric vehicles, are falling behind in the world’s largest EV market, and it’s starting to take its toll.

Mitsubishi was the first Japanese EV maker to fall in China, announcing plans to suspend operations in the region indefinitely earlier this month. A company memo stated, “In the past few months, management and shareholders have tried to the best of our ability, but due to market conditions and with great reluctance and regret, we must seize the opportunity to transition to new energy vehicles.”

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Mitsubishi China sales (Source: Bloomberg)

Mitsubishi, like Toyota, cited China’s transition from ICE to electric as reasoning. Mitsubishi’s sales have fallen from a peak of 134,500 in 2019 to only 34,500 this past year.

Other Japanese automakers are also seeing sales fall in the region, including Honda, Nissan, and Mazda.

Toyota’s sales in China fell 2.8% in the first half of the year, including a 12.8% drop in June. And it’s not only happening to automakers in Japan. They are just seeing some of the most drastic impacts. Other foreign automakers are also feeling the heat in China’s booming EV market.

Volkswagen has accelerated its EV efforts in the region, partnering with Xpeng Motors (through Audi) to use its tech platform, ADAs, and connectivity software to develop two new models.

Meanwhile, China’s EV market continues to get bigger, and domestic automakers like BYD, NIO, XPeng, Li Auto, and others are gaining their share.

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Tesla has yet to start testing its robotaxi service without driver weeks before launch

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Tesla has yet to start testing its robotaxi service without driver weeks before launch

Tesla has reportedly yet to start testing its robotaxi service in Austin without a safety driver behind the wheel – just weeks before the planned launch.

For months now, Tesla and CEO Elon Musk have been hyping the launch of “Tesla Robotaxi”, a Uber-like ride-hailing service powered by autonomous Tesla vehicles, starting with a launch in Austin, Texas in June.

We have extensively reported that this launch is disappointing compared to what Tesla promised for years: that all its consumer vehicles built since 2016 are capable of self-driving.

Instead, Tesla plans to build an internal fleet of “10-20” Model Ys and have them offer ride-hailing services in a geo-fenced area around Austin, Texas, helped by human teleoperations. This is very similar to what Waymo has been offering in other cities for years, specifically in Austin, for months now.

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Even with the significant downgrade in self-driving capabilities promised with this project, there are many doubts about Tesla’s ability to achieve the lesser goal.

That’s because the robotaxi service will be based on Tesla’s ‘Supervised Full Self-Driving’ program, which is currently achieving about 500 miles between critical disengagements fleet-wide, according to the latest crowdsourced data.

Tesla will be able to improve on that by optimizing a version for the geo-fenced area in Austin and it has been training its neural nets for that for months with vehicles going around Austin.

However, a new report now claims that Tesla has yet to start testing its service without safety drivers at the wheel – similar to Tesla’s public ‘Supervised FSD’. The Information wrote in a new report:

Elon Musk’s deadline for launching Tesla’s first robotaxi service, in Austin, Texas, is weeks away, but the company hadn’t started testing its cars without a human safety driver as of last month, according to an engineer close to the testing and a former employee. That’s a crucial step required before Tesla can launch the pilot service for customers.

For comparison, before launching its paid ride service in Austin, Waymo tested its vehicles with safety drivers in the area for 6 months and then without safety drivers for another 6 months.

Waymo has now taken over a significant market share of ride-hailing rides in the Texas capital, but it still has limitations; for example, it doesn’t drive on the interstate.

The report also mentions that Tesla has been working with local emergency services in Austin to develop intervention plans in order to avoid causing issues if its autonomous vehicles fail.

Electrek’s Take

This is the biggest softball goal. It’s a fraction of what was promised, it’s something that others have achieved before. It’s a punt created for Tesla to finally get a “win” in self-driving.

If they can’t even make it, it would be disastrous, but at least, I hope that it will finally open the eyes of many Tesla shareholders to the reality that Tesla is actually behind in autonomous driving and that Musk’s latest claims that Tesla will have “millions of robotaxi on the road” in 2026 are just the same as when he claimed it would happen in 2025, 2024, 2023, 2022, 2021, 2020, and 2019: corporate puffery.

My main concern now is for public safety. I have little hope of US regulators being able to stop Tesla considering Trump is firing anyone who got in Musk’s way after he gave him over $250 million.

If Tesla brings its cowboy approach to this, it could get bad quickly.

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Rivian CEO RJ Scaringe shares more detailed images of the R2’s Maximus drive unit

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Rivian CEO RJ Scaringe shares more detailed images of the R2's Maximus drive unit

The development of Rivian’s R2 validation builds continues to progress. We know so because the American automaker’s founder and CEO, RJ Scaringe, continues to pepper us with welcome updates with plenty of fantastic images. The latest post features the inner workings of Rivian’s Maximus drive unit, which will propel the upcoming R2 EVs when they hit the market next year.

Another day, another exciting social media update from RJ Scaringe. Nine days ago, the Rivian CEO shared a peek at the company’s new Maximus drive unit, designed to be more compact and efficiently built to help reduce cost-per-unit production.

Our only look was from outside the drive unit’s casing at the time, but it was exciting news nonetheless. As an encore, Scaringe posted photos of the R2 validation builds on a pilot line at the automaker’s facility in Normal, Illinois.

This evening, Scaringe took to Instagram and X once again to share a better look at the inner workings of the Rivian Maximus drive unit. Check it out:

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Rivian Maximus
Source: @RJScaringe/X

RJ shares more images of Rivian’s Maximus development

Rivian’s CEO posted the three images above, which showcase some interesting perspectives of the developing drive unit. As previously shared by Rivian, Maximus uses a new continuous winding technique that reduces the total welds per stator and thus the total overall cost of building each one.

For comparison, Rivian’s current Enduro drive unit requires 264 stator welds, while Maximus only needs 24. You can see the stator windings in the image above to the left. Scaringe shared excitement in the progress of the Rivian team’s Maximus drive unit as well as some insight in his post:

I love the packaging on Maximus — the drive unit for R2. It has a side mounted inverter that utilizes flat area at the end of the motor to minimize the length of bus bars, keeping them light and efficient. The large planar shape also allows all processing and power electronics to exist on a single printed circuit board.

The inverter chassis closes out the oil cooled motor cavity and seamlessly routes coolant from the power modules to the drive unit’s heat exchanger with no extra parts.

Overall, the inverter part count is reduced by 41% relative to Enduro and structural inverter lid saves more parts and fasteners by also serving as the drive unit mount. I love this design efficiency. (heart emoji)

Looks fantastic, RJ. We can’t wait to see the visual progress of the R2 you share next!

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EV sales are up, Tesla sales are down, and new electric Toyota goodness

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EV sales are up, Tesla sales are down, and new electric Toyota goodness

On today’s thrilling episode of Quick Charge, we’ve a huge spike in global EV sales and a huge dip in Tesla deliveries. Plus a whole bunch of news from Toyota, including an updated bZ that’s just a bit better than before … but is a bit better going to make a big difference?

We’re also on track for more than 1 in 4 new cars sold this year to be electric, with a whole lot more hybrids coming in to make up the difference and drive fuel demand down to a new yearly low. All this, plus the top 5 cheapest EVs to insure when you hit the play button.

Prefer listening to your podcasts? Audio-only versions of Quick Charge are now available on Apple PodcastsSpotifyTuneIn, and our RSS feed for Overcast and other podcast players.

New episodes of Quick Charge are recorded, usually, Monday through Thursday (and sometimes Sunday). We’ll be posting bonus audio content from time to time as well, so be sure to follow and subscribe so you don’t miss a minute of Electrek’s high-voltage daily news.

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Drop us a line at tips@electrek.co. You can also rate us on Apple Podcasts and Spotify, or recommend us in Overcast to help more people discover the show.


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