China's Automotive Development -- Unique Toyota Strategies for Self-Driving Cars
In the bustling world of automotive manufacturing, China stands out as the largest automobile market, with around 200 carmakers vying for a piece of the pie. Amidst this competition, up-and-coming manufacturers are experiencing a boom in Battery Electric Vehicles (BEVs). One of the global giants in the industry, Toyota, is not standing still.
Toyota's approach to carmaking in China is undergoing a significant shift. The company is focusing on partnering with local technology firms and integrating advanced LiDAR technology into mass-market New Energy Vehicles (NEVs) to enhance safety and autonomous features. This strategy aims to compete with strong domestic players by leveraging scalable, cost-effective sensor solutions and localized R&D.
A key partnership has been formed with the Chinese LiDAR company, Hesai. Toyota will integrate Hesai's ATX LiDAR into its 2026 NEVs made by a Toyota joint venture in China. This collaboration aims to commoditize LiDAR technology, moving it from niche to a standard feature in mid-level autonomous vehicles (Level 2+) within China’s booming electric vehicle market.
To close the gap with tech-savvy local competitors on autonomous driving capabilities and EV attributes, Toyota is expanding local R&D and tailoring EV-specific platforms for China. The company is also among several global automakers partnering with leading Chinese autonomous driving software providers such as Momenta to enhance Advanced Driver-Assistance Systems (ADAS), crucial for gaining traction among Chinese EV buyers who demand strong city-driving coverage and competitive pricing.
Unmanned autonomous taxis are being tested on public roads in China, with some local competitors focusing heavily on commercial robotaxi services and urban automated mobility solutions directly backed by aggressive state infrastructure and subsidy support. However, Toyota is adopting a more incremental approach with Level 2+ systems integrated into privately-owned NEVs through proven sensor and software partnerships.
Toyota's CEO for the China region, Tatsuro Ueda, shares impressions on local IT technology developments and BEV momentum. The company's strategy for autonomous driving in China is a testament to Toyota's commitment to maintaining its competitive edge in China’s rapidly evolving autonomous and electrified vehicle segment against nimble local rivals that benefit from deep integration with China’s industrial and urban mobility policies.
In conclusion, Toyota's autonomous driving strategy in China is characterized by joint ventures with Chinese firms to supply advanced LiDAR sensors for mass-market NEVs by 2026, localized R&D and EV platforms tailored to Chinese consumer needs, collaborations with Chinese AI and autonomous driving software providers, and a contrast from local competitors who are aggressively pursuing robotaxi and fully autonomous deployment backed by Chinese government policies and subsidies. This multi-pronged localized strategy aims to maintain Toyota's competitive edge in China’s rapidly evolving autonomous and electrified vehicle segment.
References: [1] World Toyota News. (n.d.). Toyota and Hesai to Collaborate on LiDAR Technology for Autonomous Vehicles in China. Retrieved from https://www.worldtoyotanews.com/toyota-and-hesai-to-collaborate-on-lidar-technology-for-autonomous-vehicles-in-china/
[2] Car News China. (n.d.). Toyota's Autonomous Driving Strategy in China: A Focus on Partnerships and Local Innovation. Retrieved from https://carnewschina.com/2022/03/29/toyotas-autonomous-driving-strategy-in-china-a-focus-on-partnerships-and-local-innovation/
[3] Reuters. (n.d.). Toyota to invest $500 million in China's ride-hailing firm Didi Chuxing. Retrieved from https://www.reuters.com/article/us-toyota-didi-investment-idUSKCN1RZ01X
[4] TechCrunch. (n.d.). Toyota and Didi Chuxing are partnering to develop autonomous ride-hailing services in China. Retrieved from https://techcrunch.com/2020/02/05/toyota-and-didi-chuxing-are-partnering-to-develop-autonomous-ride-hailing-services-in-china/
[5] The Verge. (n.d.). China's robotaxi race is heating up, with Didi Chuxing, Baidu, and others vying for autonomous ride-hailing dominance. Retrieved from https://www.theverge.com/2020/12/16/22184286/china-robotaxi-race-didichuxing-baidu-autonomous-ride-hailing-dominance
- Toyota, a global leader in the automotive industry, is partnering with Chinese technology firms, such as Hesai, to incorporate advanced LiDAR technology into New Energy Vehicles (NEVs) and compete in China's booming electric vehicle market.
- Toyota's strategy for autonomous driving in China involves localized Research & Development (R&D), tailoring EV-specific platforms to meet Chinese consumer needs, collaborations with leading Chinese autonomous driving software providers, and adopting an incremental approach for Level 2+ autonomous systems.
- As part of this strategy, Toyota will integrate Hesai's ATX LiDAR into NEVs produced by a Toyota joint venture in China, with plans to sell the vehicles by 2026, aiming to make LiDAR technology a standard feature in mid-level autonomous vehicles within the Chinese electric vehicle market.
- Amidst intensifying competition in China's autonomous driving sector, Toyota is also expanding its partnerships with firms like Momenta, a Chinese AI and autonomous driving software provider, to enhance Advanced Driver-Assistance Systems (ADAS) for a competitive edge among Chinese EV buyers.
