Toyota is planning to launch its first electric car model equipped with an advanced autonomous driving system in the Chinese market next year. This move is aimed at competing with Tesla’s. Full Self-Driving system and is expected to help the Japanese automaker regain market share in China.
Toyota’s Chinese joint venture with state-owned Guangzhou Automobile Group (GAC) announced these plans at an event in Guangzhou on Friday. The joint venture aims to close the technology gap with Chinese rivals in areas such as hybrids, batteries, and intelligent vehicles.
GAC Toyota unveiled a series of innovation targets at the event, including the launch of the Bozhi 3X SUV next year. This model will be the first to feature an advanced autonomous driving system, providing driving assistance for parking and navigation on highways and urban traffic. GAC Toyota claims this will establish its leadership in autonomous driving technology among foreign brands in China.
The autonomous driving system is being developed in collaboration with Momenta Global, a startup known for its work with automakers such as Mercedes-Benz (MBGn.DE). Additionally, GAC Toyota is partnering with Huawei to integrate its in-vehicle operating software, starting with an electric sedan set to launch in 2025 for the Chinese market.
Toyota also announced plans to introduce an iron phosphate lithium battery during 2026 and 2027. This battery is expected to reduce the production cost of its bZ4X EV by 40%, making it more competitive in the market.
Despite these advancements, Toyota ranked fifth among all brands by car sales in China during the first four months of this year. The company experienced a 22% drop in sales compared to the same period in 2023, according to data from the China Association of Automobile Manufacturers.
Toyota’s initiatives, including the launch of the Bozhi 3X SUV with advanced autonomous driving capabilities and the development of cost-effective battery technology, represent a significant step towards enhancing its competitiveness in the Chinese market. By partnering with GAC, Momenta Global, and Huawei, Toyota aims to leverage cutting-edge technologies to regain its market share and establish a strong presence in the rapidly evolving automotive industry in China.
