Toyota Motor Corporation is initiating a significant shift towards localized development of intelligence and electrification technologies within the Chinese market to offer competitively priced and appealing electrified vehicles in a region where these technologies are increasingly gaining traction. To effectuate this, Toyota China is rebranding its largest R&D facility, Toyota Motor Engineering & Manufacturing (China) Co., Ltd. to “Intelligent ElectroMobility R&D Center by TOYOTA (China) Co., Ltd. (IEM by TOYOTA)” effective August 1.
Why It Matters
The move to localize development, focusing on intelligent and electrified technology, is of utmost importance as China’s electrified vehicle market rapidly expands. Toyota strives to meet customer needs and preferences while remaining competitive in this growing market. By renaming and restructuring its China R&D facility, Toyota seeks to reinforce its commitment to intelligence and electrification, signaling a strategic shift in response to market trends.
Key Points
- Engineers from three distinct R&D facilities within China will join the IEM by TOYOTA-led development project, increasing collaboration and fostering innovative technologies.
- For electrification, the company plans to strengthen local development across all electrified vehicles (BEV, PHEV, HEV, FCEV) to achieve multi-pathway-based carbon neutrality.
- Toyota also partners with Denso and Aisin to expedite electric powertrain development, breaking down organizational boundaries for better cooperation.
- Regarding intelligence, Toyota is accelerating the local design and development of smart cockpits for an enhanced user experience. This includes advances in interior space design, use of AI, and autonomous driving systems and safety features better suited to the Chinese market.
- To enhance both electrification and intelligence, the company aims to significantly cut manufacturing costs through three strategies: developing a local supplier base, revising parts designs, and implementing production engineering/manufacturing reforms.
Bottom Line
Toyota’s Chief Executive Officer of the China Region, Tatsuro Ueda, emphasized that Toyota aims to keep pace with China’s fast-growing market through systemic reform and a focus on local development. With IEM by TOYOTA at the core, the goal is to deliver competitive products that satisfy Chinese customers’ evolving needs. Importantly, Toyota plans to share development outcomes and lessons learned in China not just locally, but globally. This strategy reaffirms Toyota’s ongoing commitment to creating superior cars that cater to customer needs in every region.
