Toyota lags behind in China’s rapidly evolving electric vehicle (EV) landscape, a challenge common among traditional automakers. Notwithstanding the trend among some of their peers, the corporation has no intention of following suit. To stay ahead of the curve, Toyota is committed to creating even more exceptional vehicles while increasing production volumes to keep pace with industry leaders like BYD.
Toyota aims to manufacture up to three million vehicles annually in China by 2030. The production numbers have more than doubled, exceeding 3.5 million vehicles in the past year alone.
According to a recent report, the Japanese automaker is poised to surpass its competitors in the region. Toyota aims to align its sales and production strategies closer together in China while granting local management greater autonomy.
Despite this setback, Toyota is determined to revive its presence in China’s competitive market by reclaiming lost ground from local powerhouses such as BYD.
For the first time, BYD has recorded eight consecutive months of rising sales, with a milestone achievement of more than 500,000 plug-in hybrid and electric vehicle deliveries.
Toyota struggles to gain traction in China’s competitive electric vehicle (EV) market.
According to recent data, BYD secured the top spot in China’s new-energy vehicle (NEV) market last month, boasting an impressive 36.1 percent share with 431,367 models sold. The corporation is accelerating production and significantly expanding its personnel base to meet the growing need.
Toyota’s international production declined for the first time in four years during the first half of its 2025 financial year. Toyota’s domestic production declined by a significant 9.4% percent, while overseas manufacturing contracted nearly 6%.
Toyota suffered the steepest decline in China, with production plummeting 17% due to its difficulties in matching the pace of increasingly competitive low-cost rivals that often outshine it. BYD’s most affordable electric vehicle, the Seagull, starts at around $9,500 (approximately 69,800 yuan) in its native China.
Toyota stated that in response to the intense competition in the Chinese market, it is constantly exploring innovative strategies.
Toyota aims to surpass current standards by producing even higher-quality vehicles in China, seeking a revamp of its model sales in the region.
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Toyota may have to rely more heavily on internal leadership to accelerate its improvement efforts, lest it risk being left behind.
Toyota aims to capitalize on its in-house partnerships to gain a competitive advantage. In sharp contrast, Japanese automakers such as Honda and Nissan are actually scaling back their presence in China amid declining sales and revenue.
Electrek’s Take
As China’s electric vehicle (EV) market becomes increasingly saturated with affordable options, manufacturers are seeking opportunities overseas to fuel growth and innovation?
Established players such as BYD have already dominated the electric vehicle (EV) market in prominent regions including Southeast Asia and Central and South America, boasting impressive sales figures. The company is also rapidly expanding its presence in Europe.
Although BYD is renowned for its affordable electric vehicles such as the Seagull and Dolphin, the company is rapidly expanding its portfolio with premium offerings, including mid-size luxury electric SUVs and high-performance supercars entering the market.
As the world’s leading electric vehicle (EV) market, China has set the pace for innovation and adoption. However, as domestic automakers expand their global reach, traditional manufacturers are likely to face increased pressure.
Following a historic milestone where BYD surpassed Honda and Nissan in global auto sales for the first time, the company is now hot on Ford’s heels as it closes in on the American automaker’s shipment totals this year.
Will it take BYD long to catch up with Toyota and Volkswagen? Tell us what you suppose within the feedback under.
