Japanese Media: Toyota Plans to Intensify Electric Vehicle Push to Regain Ground in China Market

According to a report by Japanese media outlet Yomiuri Shimbun on November 8, at the interim consolidated financial results briefing held on the 5th, Toyota Motor Corporation expressed its intent to "regain lost ground" in the fiercely competitive Chinese market. The company’s strategic shift from hybrid vehicles toward pure electric vehicles has become increasingly evident, driven by growing demand for EVs in China.

In its medium- to long-term strategy, Toyota announced that after-sales services, robotics operations, and new vehicle sales would be key focus areas.

At an online press conference, Deputy President Hiroyuki Miyazaki stated: “Starting next year, we will rapidly introduce new energy vehicles with strong competitiveness into the Chinese market.” With rising demand in China for fully electric models beyond gasoline and hybrid vehicles, the company plans to develop compelling new models to meet customer needs.

Between 2021 and 2025, Toyota’s global sales grew by 10%, while its sales in China declined by 8%, reflecting stagnation in growth momentum.

In 2026, the market is expected to face further challenges due to soaring gasoline prices. Toyota’s market share in China stood at 9.1% in 2021 but has dropped to 7.8% this year.

Against this backdrop, Toyota is expanding its electric vehicle sales through its Chinese joint ventures in an effort to reclaim market share. To compete with faster-developing Chinese automakers, the company has shortened development cycles and accelerated the timeline from new model launches to refreshes.

Currently, Toyota’s presence in China is primarily centered on hybrid and gasoline-powered vehicles. Going forward, the company will prioritize electric vehicles and plug-in hybrid vehicles (PHVs), increasing their proportion within its product lineup.

To enhance profitability in China, reducing parts procurement costs is critical. At the press conference, Deputy President Miyazaki said: “We will select only the most suitable components and technologies—regardless of origin or supplier.”

Despite external pressures from U.S. tariffs and geopolitical tensions in the Middle East, Toyota achieved its first sales and profit growth in three years. Based on solid performance, the company has upgraded its forecasts for operating and net profit through the fiscal year ending March 2027. Operating revenue (corresponding to sales) is projected to reach 5.35 trillion yen (approximately 2.3 trillion RMB). Globally, demand for hybrid vehicles remains robust, alongside rising demand for pure electric vehicles.

Beyond new vehicle sales, another area of focus is what the company refers to as the “value chain.” Through vehicle maintenance and financial support services, Toyota aims to strengthen ongoing engagement with customers. These businesses contributed an additional 7 billion yen in operating profit compared to the same period last year.

The number of Toyota vehicles on roads worldwide has reached 150 million, which Deputy President Miyazaki described as a “treasure.” While striving to boost sales through new vehicle offerings, the company is also exploring new services capable of generating stable future profits.

In January of next year, Toyota will establish a new division called “Toyota Robotics,” integrating internal personnel and data related to robotics. Leveraging robotics technologies developed in its automotive manufacturing plants, the company intends to deploy them across the Toyota Group and its supply chain partners.

Automotive sales remain subject to national policies and international developments. In addition, Toyota plans to diversify revenue streams through after-sales services and robotics-related businesses.

Original article: toutiao.com/article/1881273698880524/

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