Toyota Sets Sights on China’s Booming Car Market Amid EV Challenge

The United States has been Toyota’s largest overseas market in recent years, generating a staggering 13.8 trillion Japanese yen in revenue for the automaker in 2024 alone.

However, Toyota is now focusing on capturing the Chinese car market. Traditionally, Japanese cars have faced little competition when it comes to internal combustion engines (ICE).

But in the world of pure electric vehicles (EVs), China reigns supreme. BYD has surpassed Tesla to become the world’s top-selling battery-powered EV manufacturer.

Despite the challenges, Toyota is ramping up car production in China, including EVs. The company plans to increase production to around 2.5 million units by 2030.

Toyota aims to boost production to as much as 3 million vehicles a year by the end of the decade, a 63% increase from the record 1.84 million vehicles it produced in China in 2022.

However, the biggest hurdle for Toyota in China remains electric vehicles. China’s EV production capabilities are far ahead, with companies like Nio and BYD leading the charge.

To compete, Toyota will need to work closely with its joint venture partners in China to ensure faster and more efficient EV production.

FAW Group’s Hongqi brand and GAC Group’s Aion EV both outsell respective models from FAW Toyota Motor and GAC Toyota Motor.

As Toyota navigates this challenging landscape, the Japanese automaker’s success in China’s EV market will depend on its ability to adapt and collaborate with local partners.