Toyota China Strategy Upgrade: Deepen Localization, Empower Local Teams in R&D and Decision-Making

At the 2026 Beijing International Automotive Exhibition, Toyota China announced that it will adopt “Made with China, for China” as its guiding principle for 2026, further deepening its localization strategy. The company will bring its Chinese management team to the forefront, ensuring strategic decisions are more closely aligned with the Chinese market. The Lexus Shanghai New Energy Project has officially been launched. Toyota will establish an integrated system covering R&D, production, and sales centered around battery electric vehicles (BEVs). GAC Toyota and FAW Toyota have already introduced BEV models developed with Chinese technologies, including the bZ3X, bZ5, and bZ7. The next-generation Highlander and Sienna will feature range-extended powertrains, with development led by Chinese engineers. Since June 2024, GAC Toyota has transferred decision-making authority for vehicle development targeting the Chinese market to its Chinese team, fully implementing a Chief Engineer system in China, under which Chinese teams lead vehicle definition and development. In 2025, Toyota’s sales in China exceeded 1.78 million units, up from 1.776 million units in 2024, representing a year-over-year increase of at least 0.23%. Additionally, Toyota is strengthening collaboration with Chinese tech companies and suppliers, including Huawei, Xiaomi, and Momenta, and has proposed building an open AI ecosystem. The company stated that GAC Toyota has ample room to accommodate multi-party partnerships.