Toyota is being squeezed out of the world’s largest auto market as the shift to EVs heats up
Toyota is losing out as the world’s largest auto market accelerates its shift to EVs. The Japanese automaker informed dealers that it plans to cut production in China with one of its joint ventures.
As China leads the auto industry’s transition to electric cars, several automakers are being squeezed out of the market.
Japan’s Toyota is the latest victim. Toyota is extending a production cut, initially planned for October and November, by another three months.
Toyota’s joint venture with FAW Group said in a letter reviewed by Reuters, “Production from December to February next year will continue to be reduced by a large amount.”
The letter added that sales to Toyota dealers will be cut to 66,000 in December, 60,000 in January, and 38,000 in February.
The move comes as the company looks to keep up in the “severe market environment” in China. Market leaders like BYD and Tesla have slashed prices all year, making it tough for other legacy automakers to compete.
Toyota pulls back as EVs take over in China
With low-priced EVs like the BYD Dolphin, starting at around $17,500 in China, Toyota and others are being squeezed out of the market.
Toyota has already announced layoffs in the region with another joint venture with China’s GAC. The JVs factory employed around 19,000 people, building models including the bZ4X.
After launching the bZ4X in China last October, the company dropped prices by 15% in February as the electric SUV failed to gain traction.
Toyota’s partnership with FAW launched its first electric sedan, the bZ3, in China earlier this year, hoping to spark demand. However, a recall over the summer derailed its momentum.
The automaker revealed plans in July to have engineers from its three joint ventures in China, BYD, FAW, and GAC, work together on a “Toyota-led development project” as it looks to catch up.
Although Toyota still ranks third after BYD and Volkswagen in auto sales in China, it’s losing market share.
According to data from the China Association of Automobile Manufacturers, Toyota sold 1.26 million cars to dealers through September, down 9% from last year. Meanwhile, BYD’s sales were up 60% during the same period.
Electrek’s Take
Toyota’s hesitancy toward EVs is costing it in the world’s largest auto market. EV makers like BYD and Tesla continue gaining market share while laggards fall further behind.
Although the transition has hit Toyota, other Japanese automakers like Nissan, Honda, and Mitsubishi are feeling the impacts even more.
Mitsubishi suspended its business in China after sales fell from over 134,500 in 2019 to only 34,500 this past year.
Nissan’s sales plummeted 20% last year, dropping it out of the top five automakers by market share.
The transition to EVs caught many automakers off guard, and many are now paying for it. China’s auto market was first, but other key markets are expected to follow.
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With its tire-blistering acceleration and record-setting performance, the Xiaomi SU7 Ultra has been getting attention throughout the auto industry, impressing everyone who’s seen it. That “everyone” now seems to include the OG supercar brand, itself.
CarNewsChina posted pictures from a Weibo user that reportedly show a Xiaomi SU7 Ultra exiting the storied Ferrari factory in Maranello, Italy. According to a Chinese blogger going by 西米露在博洛尼亚 (which seems to translate to “Sago Dessert in Bologna”), the prancing horse brand is actively benchmarking the Chinese hypercar for its own upcoming EV.
The SU7 Ultra was definitely coming from inside Ferrari’s facility. After verification, we learned this specific vehicle was officially purchased by Ferrari for testing, and the development of their next-generation electric platform.
Yet another Chinese auto blogger, 苏黎世贝勒爷, claims that Ferrari representatives visited Xiaomi headquarters last year, allegedly to discuss the joint development of next-generation high-performance EV motors.
The Xiaomi SU7 Ultra made its debut last year, promising 1,548 hp, sub 2.0-second 0-60 mph times, and a top speed well over 200 mph – all at a price lower than a Tesla Model S Plaid or Porsche Taycan Turbo GT. The car sold out almost immediately after it was unveiled, racking up some 50,000 orders almost overnight.
The new electric benchmark
In the automotive world, “benchmarking” is a process in which car companies systematically tear down each others’ competitive products to compare everything from sound insulation, vehicle ride and handling, component materials, and even manufacturing methods against their own or against other industry leaders. The goal is to evaluate performance, cost, quality, and other key metrics, effectively figuring out “where they stand” in the market.
If Ferrari really did buy an SU7 to benchmark it against their own upcoming electric supercar, it’s more than just a curiosity – it could mean that the highest tiers of automotive innovation have shifted from West to East. Maybe forever.
Featured image via Xiaomi; sources throughout the post.
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We’re finally getting our first teases of the upgraded 2027 Chevy Bolt, built on GM’s battery/motor platform formerly known as Ultium. So far, so good for the vehicle, which will be revealed later this Fall.
Chevy took to social media today to tease the 2027 Chevy Bolt, saying, “You asked, we listened. The #ChevyBolt is back and better than ever. More this fall. 👀”
Chevy ended the original Bolt program with the 2023 model, which was loved by a loyal group of customers (including myself). Some of the major gripes, including charging speed and rear brake lights, already look to be addressed. Also, a new more aggressive fascia is debuting.
Electrek’s take
GM has done an incredible job keeping the 2027 Bolt under wraps. It will be the first GM vehicle with a native NACS port after the Cadillac Optiq-V, which we spied in Seattle last week.
Hopefully, the new Bolt will have improved charging speeds over and above the 54kW that previous Bolts adhered to. One possible downgrade is that the old Bolt’s amazing wireless CarPlay/Android Auto system will likely be replaced by GM’s move to Android’s built-in experience. For a few years, the Chevy Bolt was the most affordable long-range EV, and it won our 2022 Electrek car of the year for its versatility and price.
I would, of course, like to see the new Bolt as a hot hatchback, but GM CEO Mary Barra has hinted that it will likely take more of the EUV’s SUV form factor. Things like AWD options, SuperCruise, pricing, power and range are yet to be revealed, but stay tuned to Electrek for the latest on Bolt developments.
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On today’s test-acular episode of Quick Charge, it’s a new day and a new Chinese ADAS test for Tesla to conquer – but this one’s got a LOT more pedestrian carnage to parse through! We’ve also got some great e-bike deals from Retrospec and a bladder-busting Hyundai.
Today’s episode is brought to you by Retrospec – the makers of sleek, powerful e-bikes and outdoor gear built for everyday adventure! To that end, we’ve got a pair of Retrospec e-bike reviews followed up by the updated Hyundai IONIQ 6 with nearly 350 miles of range from its updated long-range battery. With that, Hyundai now has the longest range Korean EV on the market, while Texas is adding megawatts of battery energy storage to beef up its troubled grid, and it’s doing so faster and cheaper than ever before.
Plus: Quick Charge listeners can get an extra 10% off the price of their next awesome e-bike by using code ELECTREK10 at retrospec.com!
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If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
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