Honda and Toyota Pivot to Chinese Tech and Local Production to Accelerate EV Strategy in China

Honda and Toyota have recently adjusted their electric vehicle (EV) strategies in China, increasingly adopting locally developed technologies and components while advancing localized production models. Following a visit to Guangzhou, Honda Motor Co. President Toshihiro Mibe stated that Honda will utilize EV platforms provided by its Chinese partners in the country. Previously, Honda’s insistence on independent development led to higher vehicle pricing and lukewarm market reception. On Toyota’s side, its bZ7 EV model launched in China this March already incorporates technology from Chinese companies. Toyota has also established a wholly owned subsidiary in Shanghai and plans to begin local production of Lexus-branded EVs there by 2027. Meanwhile, Chinese automakers are treating vehicles as digital products, employing highly automated manufacturing methods—including “lights-out factories”—and integrating artificial intelligence into R&D processes. This approach enables round-the-clock, three-shift operations, achieving R&D efficiency twice that of traditional Japanese models.