Toyota announced that it would accelerate the development of electric car technology in China.
The decision, which is the latest from the top-selling automaker in the world, illustrates a greater shift towards electric vehicles. A revamp of its supply chain and the creation of long-range batteries are two aspects of its newly revealed ambitious new EV strategy.
Due to the advent of quick-moving local businesses, China—once perceived as a market with potential for endless expansion for foreign automakers—is now viewed as one that is becoming more and more competitive.
Toyota announced on Monday that it will quicken the development of its powertrains in collaboration with its suppliers Denso (6902.T) and Aisin (7259.T), as well as local design and development of “smart cockpits” tailored to the Chinese market.
In order to increase its competitiveness, it stated that it will work to dramatically lower production costs, particularly by creating a local supplier base.
In order to reach carbon neutrality through a “multi-pathway”-based strategy, it claimed it would strengthen the development of battery-powered automobiles, plug-in hybrids, hybrids, and fuel cell cars in China.
