Connect with us
Toyota-local-production-china-us Toyota-local-production-china-us

News

Toyota focuses on localization in China & the US to boost EV production

(Credit: Toyota)

Published

on

Toyota will focus on developing local production and supply chains in China and the United States to boost electric vehicle sales. 

The new President and CEO of Toyota Motor Corporation (TMC), Koji Sato, revealed the Japanese automaker’s plans in the electric vehicle market (EVs). 

Toyota remained the top-selling automaker in the world for three consecutive years in 2022. However, the rise of battery electric vehicles (BEV) might threaten Toyota’s crown. The Japanese automaker has been a little late in joining the BEV race. This year, though, Toyota appears to have realized the potential of BEVs in the auto industry. 

Earlier this month, TMC announced the launch of 10 new BEVs with a target sales goal of 1.5 million units by 2026. Toyota aims for significant growth in the BEV market. It is a smart move, considering that BEVs might be the future of the whole auto industry. Many countries are choosing to phase out internal combustion engine vehicles and support clean, energy-efficient cars.

Part of Toyota’s strategy for growth includes localization in China and the United States. 

Advertisement

“In areas where there is an acceleration in the shift towards battery EVs, like China and the US, we need to be bold with local production,” said Toyota’s new CEO in a group interview over the weekend.

China’s Place in the BEV Market

The Chinese auto market is the world’s largest vehicle market, making it a prime target for Toyota’s goals. China is vigorously supporting clean energy vehicles, including BEVs and plug-in hybrids. 

Japanese automakers posted the sharpest sales decline in China against foreign brands. The Financial Times attributed Toyota’s sales decline to its slow rollout of BEVs. FAW Toyota and GAC Toyota in China ranked 9th and 10th—respectively—in the China Passenger Car Association’s (CPCA) list of Top 10 Chinese automakers by retail sales. For comparison, Tesla–which only sells BEVs–ranked 7th place.

The CPCA reported Toyota’s 23.5% year-over-year (YoY) decrease in sales in January–including ICE and BEV sales. By February, Toyota reported a decline of 12.2% YoY in sales, with a slight increase of 0.9% year-to-date (YTD). Lastly, in March 2023, Toyota sold 136,400 units in China, down 18.5% YoY. Its sales volume in China by the end of Q1 2023 was 379,900, down by 14.5% YoY. 

The US IRA’s Impact on the BEV Market

The United States has also shown full support for battery electric vehicles, specifically with the Inflation Reduction Act (IRA). The IRA provides incentives to support BEV production within the United States or any country with a free trade agreement with the US. It also includes tax credits for BEV purchases. 

Advertisement

The IRA has significantly affected the BEV market worldwide since it passed. Many companies outside of the United States have already started working with American companies to build BEV components in the United States. For instance, South Korean battery supplier LG Energy Solutions is working on the construction of battery production facilities in the United States with Ford and Tesla. 

Toyota Motor North America (TMNA) reported saw an uptick in electrified vehicle sales in the first quarter. In March, electric vehicles made up 27.5% of TMNA’s total sales volume. TMNA sold a title of 469,558 vehicles in Q1 2023, down by 8.8% by a volume and daily selling rate (DSR) basis. It sold approximately 118,836 elective vehicles, accounting for 25.3% of total sales volume. 

“With 22 electrified vehicle options between both the Toyota and Lexus brands, the most among any automaker, we’re giving customers a choice that fits their lifestyle, pocketbook and needs,” said Jack Hollis, TMNA’s executive vice president of sales. “We continue to make improvements to our vehicle inventory to satisfy customer demand, while doing all we can to exceed expectations as we introduce more electrified vehicles throughout the balance of 2023.”

The Teslarati team would appreciate hearing from you. If you have any tips, contact me at maria@teslarati.com or via Twitter @Writer_01001101.

Maria--aka "M"-- is an experienced writer and book editor. She's written about several topics including health, tech, and politics. As a book editor, she's worked with authors who write Sci-Fi, Romance, and Dark Fantasy. M loves hearing from TESLARATI readers. If you have any tips or article ideas, contact her at maria@teslarati.com or via X, @Writer_01001101.

Advertisement
Comments

News

Tesla all but confirms that affordable Model Y is coming Tuesday

It does appear that October 7 would be the date when the world sees Tesla’s actual idea of what an affordable vehicle would be like.

Published

on

Tesla has released a cryptic teaser of a product that would be announced on Tuesday, October 7, 2025. Based on the company’s hint, it does appear that the product would be the affordable Model Y that has been spotted doing road tests across the country over the past months.

Affordable Model Y sightings

Last week, news emerged that a number of key Tesla influencers visited Gigafactory Texas for a private event. These included veteran Tesla YouTubers, car reviewers, influencers on X, and even a teardown expert who provided the initial insights on how to improve the original Model 3 sedan. At the same time, an uncovered unit of the apparent affordable Model Y was posted online. The vehicle was reportedly sighted close to Giga Texas. 

The new Model Y variant had some notable changes from the standard Model Y. Its fascia seemed inspired by the Model 3 sedan instead of the Cybertruck, and its roof seemed blacked out. Overall, it looked like a simpler Model Y designed to be offered at an affordable price. 

The weekend teasers

Teasers about an upcoming product were posted by Tesla’s official account on social media platform X, though the electric vehicle maker made it a point to keep things very vague. Initially, a closeup video of what appeared to be an aero wheel was posted, though it was vague enough that some speculated that it could be Elon Musk’s long-announced HVAC system instead. 

On Sunday, another teaser video was posted featuring the headlights of a new car. This brought speculations that the new Roadster might finally be announced. Inasmuch as a new Roadster unveiling would be exciting, however, it was evident that the headlights in the new teaser were a match to the uncovered affordable Model Y unit that was spotted close to Giga Texas a few days ago. With this in mind, it does appear that October 7 would be the date when the world sees Tesla’s actual idea of what an affordable vehicle would be like.

Advertisement
Continue Reading

Elon Musk

Tesla releases cryptic teaser for something massive and it’s coming this week

On Sunday morning, Tesla released a nine-second teaser video of what appears to be either a vehicle wheel, fan, or some sort of propeller, but there are no real clues as to what it could be exactly.

Published

on

Credit: Tesla

Tesla has released a cryptic teaser for something massive, and it will release details on it this week. With many different projects in the works, there is a lot of speculation going on about what it could potentially be, but we have a few ideas.

On Sunday morning, Tesla released a nine-second teaser video of what appears to be either a vehicle wheel, fan, or some sort of propeller, but there are no real clues as to what it could be exactly.

It then ends with “10/7,” meaning it will announce something on October 7, which is this Tuesday:

Given that Tesla has been working on a handful of pretty notable projects that are set for unveiling at the end of this year, and there are some clues that seem to point in their direction with this short teaser video.

There are two projects that come to mind almost immediately: the Tesla Roadster is one, and the “E41” or affordable model is the other. Here’s what we know about both:

Tesla Roadster Demo Event

Tesla said earlier this year that it would have a demo event for the Roadster to unveil some new technologies and show off what it has been working on over the past few years.

There have been a lot of crazy things in the works for the Roadster, including a SpaceX package that would use cold-gas thrusters for an insane 1.1-second 0-60 MPH acceleration rate. This package was also supposed to help it hover, something CEO Elon Musk has teased for the past few years.

The Roadster was ready for release earlier this year, but after Chief Designer Franz von Holzhausen and VP of Powertrain Lars Moravy showed Musk what they had come up with, he wanted more.

Moravy said on the Ride the Lightning podcast earlier this year:

“What we had come up with exceeded what we originally planned. So, Elon was like, ‘Wow, great. Let’s do more!'”

The Roadster event was coined as “the most epic demo,” and since it was planned for the end of 2025, it is totally feasible to believe this could be it.

Elon Musk teases Tesla’s “most epic demo” by end of year

Tesla ‘E41’ Affordable Model

Some believe the teaser could be the official launch of Tesla’s affordable model, which Musk said earlier this year is simply a stripped down Model Y.

There have been some sightings of this vehicle in the past few weeks, including one on Friday that showed the vehicle completely uncovered for the first time:

The launch of the affordable model makes sense, especially from a timing perspective. With the $7,500 EV tax credit officially coming to a close on September 30, many are wondering how Tesla will spark growth in its deliveries. A more affordable EV would be the perfect response, and it is something that Tesla has been working on for some time.

Other Potential Ideas

There are some pretty interesting ideas as to what the teaser could be apart from the Roadster or affordable model. Some believe it could be a cooling fan for a GPU cluster, which would make sense considering Tesla’s prowess in data.

Grok also made an interesting guess, stating it could be a propeller for a secret air taxi Tesla is developing. This seems sort of our of left field.

We do know Tesla hosted a handful of influencers at Gigafactory Texas this past week, so whatever the company showed them is likely what will be unveiled on Tuesday.

Continue Reading

News

Tesla Optimus is learning martial arts in new video teasing capabilities

For the past few months, Tesla has been refining its capabilities and making some serious progress on what Optimus is capable of. This morning, Musk released a new video showing Optimus learning Kung Fu, perhaps its most impressive feat yet.

Published

on

Credit: Elon Musk | X

Tesla Optimus is learning martial arts, a new video released by CEO Elon Musk shows, a crazy development and advancement in the robotics project the company has been working on for a few years.

Optimus has been a major focus of Tesla for the past several years, especially as Musk has said he believes it will be the biggest product of all time and could be the biggest contributor to the company’s valuation.

For the past few months, Tesla has been refining its capabilities and making some serious progress on what Optimus is capable of. This morning, Musk released a new video showing Optimus learning Kung Fu, perhaps its most impressive feat yet:

The video shows Optimus working with a Kung Fu teacher, known as a Shifu, going through what appears to be some sort of routine of combinations. It’s quite impressive to see the fluidity of the movements and Optimus’s ability to keep up with Shifu.

Tesla has been “working hard” to scale Optimus production, Musk said last week, a project that has obviously confronted both AI and manufacturing teams with a variety of challenges.

The plan is to have an annual production run-rate of one million units by 2030, and there were plans to build 5,000 units this year.

Elon Musk gives update on Tesla Optimus progress

Musk still believes Optimus will make up roughly 80 percent of Tesla’s value. In January, he said it would be “overwhelmingly the value of the company.”

Tesla plans to launch the Gen 3 version of Optimus soon, and although a video of a new-look prototype was released by Marc Benioff, the CEO of Salesforce, the company’s frontman stated that this was not what the next-generation prototype would look like.

Elon Musk confirms Tesla has never shown Optimus V3 design yet

This video seems to show there is still significant progress being made on the Optimus project, and it will be perhaps one of the most impressive humanoid robots available to consumers in the coming years.

Continue Reading

Trending