Toyota, the world’s largest automaker, is aiming to reclaim market share in China with a strategic two-pronged attack: launching its first electric vehicle (EV) equipped with an advanced self-driving system in 2025. This announcement comes amid rising competition from both domestic Chinese carmakers and established rivals like Tesla.
The news comes from GAC Toyota, a joint venture between Toyota and the state-owned Guangzhou Automobile Group (GAC). The as-yet-unnamed EV will be the first Toyota model to boast an autonomous driving system comparable to Tesla’s Full Self-Driving (FSD) technology. This system is expected to offer advanced driver-assistance features for functions like parking, highway navigation, and urban traffic navigation.
This strategic move by Toyota reflects a multi-fold objective. Firstly, it signifies the company’s commitment to China’s rapidly growing EV market, the world’s largest car market by volume. China actively promotes electric vehicles through subsidies and stricter emission regulations, making it a crucial battleground for automakers.
Secondly, the advanced self-driving system is an apparent attempt to close the gap with competitors. Tesla has established itself as a leader in the autonomous vehicle space, and domestic Chinese carmakers like BYD and Nio are making significant strides in both EV and self-driving technology.
GAC Toyota hopes that this new EV will boost sales and restore Toyota’s reputation for cutting-edge technology in the Chinese market. Toyota is traditionally known for its reliable and fuel-efficient vehicles, particularly hybrids. However, the company has been criticized for needing to be faster to adapt to the shift towards EVs and autonomous driving.
The specifics of the self-driving system remain undisclosed. Still being determined to be a Level 2 or Level 3 system on the SAE International’s six-level scale for self-driving cars is unclear. Level 2 offers partial automation, requiring driver supervision, while Level 3 allows for conditional automation under specific circumstances.
There are also questions regarding the system’s capabilities compared to Tesla’s FSD. While Tesla boasts significant advancements in self-driving technology, FSD has faced criticism for safety concerns and limitations. GAC Toyota will need to ensure its system is not only feature-rich but also demonstrably safe and reliable.
Beyond the self-driving system, the new EV itself is shrouded in secrecy. Details about the vehicle’s range, battery technology, and overall design have yet to be revealed. However, GAC Toyota has hinted at the possibility of introducing a new iron phosphate lithium battery in 2026-2027, potentially offering a significant cost reduction for the EV.
Launching this first EV with advanced self-driving technology marks a significant shift for Toyota in China. It signals the company’s recognition of the changing automotive landscape and its determination to compete in the world’s most dynamic car market. The success of this venture will depend on several factors, including the capabilities and pricing of the EV, the effectiveness of the self-driving system, and Toyota’s ability to navigate the ever-evolving regulatory environment in China. Regardless, this announcement indicates that Toyota is prepared to step on the gas and reclaim its position as a leader in the Chinese automotive industry.
