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.
“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.
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.
Elon Musk
Elon Musk sends stern warning to Tesla vandals, doubters
Elon Musk sent another warning to vandals that have attacked Tesla for political reasons.

Elon Musk has sent a stern warning to Tesla vandals, doubters, and attackers, who have subjected the company and its owners to political violence through arson and other modes of retaliation.
Over the past few months, Tesla showrooms and vehicles have been hit with numerous attacks from those who have opposed Musk and his political involvement with the Trump Administration. Although Musk has stepped back from his role within government significantly since the start of May, the company is still looked at as a political target.
While the White House has put a clear-cut line on the acts, calling them domestic terrorism and holding those responsible for the damage they have done, there are still numerous and daily instances of keying cars or worse.
Yesterday, Musk continued to send stern warnings to those who oppose Tesla and choose to handle their distaste for the company with violence and vandalism. In a Bloomberg interview at the Qatar Economic Forum, Musk was asked if he took what has happened to Tesla “over the past few months personally.”
Musk replied simply but sternly: “Yes.”
“Did you take what happened to Tesla over the past few months personally?”
“Yes.” –@elonmusk pic.twitter.com/mNbgkpgZEo
— TESLARATI (@Teslarati) May 20, 2025
He went on to say that not only will those who vandalized the company and its products owned by consumers be held to the fullest extent of the law, but also those who fund it.
Musk also said during a CNBC interview yesterday that very few people buy a company’s products because of the CEO’s political beliefs, and many people do not even know where those CEOs stand on various social issues.
Although Musk has gone out of his way to be transparent about his beliefs, he has a valid point. He obviously felt that, because of his influence, he held a duty to uphold American values and protect what he felt was an attack on free speech and human rights.
Disagreeing with Musk and his political stances is totally reasonable, but damaging products that consumers bought from his companies is not impacting him directly. Instead, it is making consumers’ lives more difficult.
News
Tesla Model 3 gets perfect 5-star Euro NCAP safety rating
Tesla prides itself on producing some of the safest vehicles on the road today.

Tesla prides itself on producing some of the safest vehicles on the road today. Based on recent findings from the Euro NCAP, the 2025 Model 3 sedan continues this tradition, with the vehicle earning a 5-star overall safety rating from the agency.
Standout Safety Features
As could be seen on the Euro NCAP’s official website, the 2025 Model 3 achieved an overall score of 90% for Adult Occupants, 93% for Child Occupants, 89% for Vulnerable Road Users, and 87% for Safety Assist. This rating, as per the Euro NCAP, applies to the Model 3 Rear Wheel Drive, Long Range Rear Wheel Drive, Long Range All Wheel Drive, and Performance All Wheel Drive.
The Euro NCAP highlighted a number of the Model 3’s safety features, such as its Active Hood, which automatically lifts during collisions to mitigate injury risks to vulnerable road users, and Automatic Emergency Braking System, which now detects motorcycles through an upgraded algorithm. The Euro NCAP also mentioned the Model 3’s feature that prevents initial door opening if someone is approaching the vehicle’s blind spot.
Standout Safety Features
In a post on its official Tesla Europe & Middle East account, Tesla noted that the company is also introducing new features that make the Model 3 even safer than it is today. These include functions like head-on collision avoidance and crossing traffic AEB, as well as Child Left Alone Detection, among other safety features.
“We also introduced new features to improve Safety Assist functionality even further – like head-on collision avoidance & crossing traffic AEB – to detect & respond to potential hazards faster, helping avoid accidents in the first place.
“Lastly, we released Child Left Alone Detection – if an unattended child is detected, the vehicle will turn on HVAC & alert caregivers via phone app & the vehicle itself (flashing lights/audible alert). Because we’re using novel in-cabin radar sensing, your Tesla is able to distinguish between adult vs child – reduced annoyance to adults, yet critical safety feature for kids,” Tesla wrote in its post on X.
Below is the Euro NCAP’s safety report on the 2025 Tesla Model 3 sedan.
Euroncap 2025 Tesla Model 3 Datasheet by Simon Alvarez on Scribd
Elon Musk
USDOT Secretary visits Tesla Giga Texas, hints at national autonomous vehicle standards
The Transportation Secretary also toured the factory’s production lines and spoke with CEO Elon Musk.

United States Department of Transportation (USDOT) Secretary Sean Duffy recently visited Tesla’s Gigafactory Texas complex, where he toured the factory’s production lines and spoke with CEO Elon Musk. In a video posted following his Giga Texas visit, Duffy noted that he believes there should be a national standard for autonomous vehicles in the United States.
Duffy’s Giga Texas Visit
As could be seen in videos of his Giga Texas visit, the Transportation Secretary seemed to appreciate the work Tesla has been doing to put the United States in the forefront of innovation. “Tesla is one of the many companies helping our country reach new heights. USDOT will be right there all the way to make sure Americans stay safe,” Duffy wrote in a post on X.
He also praised Tesla for its autonomous vehicle program, highlighting that “We need American companies to keep innovating so we can outcompete the rest of the world.”
National Standard
While speaking with Tesla CEO Elon Musk, the Transportation Secretary stated that other autonomous ride-hailing companies have been lobbying for a national standard for self-driving cars. Musk shared the sentiment, stating that “It’d be wonderful for the United States to have a national set of rules for autonomous driving as opposed to 50 independent sets of rules on a state-by-state rules basis.”
Duffy agreed with the CEO’s point, stating that, “You can’t have 50 different rules for 50 different states. You need one standard.” He also noted that the Transportation Department has asked autonomous vehicle companies to submit data. By doing so, the USDOT could develop a standard for the entire United States, allowing self-driving cars to operate in a manner that is natural and safe.
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