What?
Toyota is set to unveil its first electric vehicle (EV) equipped with an advanced self-driving system to compete with Tesla. Through its joint venture, GAC Toyota, the automaker will launch an EV with Tesla Full Self Drive-like capabilities in China in 2023. This move aims to bridge the technology gap with EV leaders like Tesla, XPeng, BYD, and NIO in the region. The upcoming Bozhi 3X SUV will pioneer Toyota’s self-driving tech, offering features such as road driving, obstacle avoidance, and parking, similar to Tesla’s Full Self Driving system. This innovation stems from Toyota’s collaboration with Momenta, a Beijing-based autonomous vehicle startup, in which Toyota was a key investor during Momenta’s 2021 Series C funding round.
Why does it matter?
Toyota’s foray into self-driving EVs signifies its commitment to staying competitive in the rapidly evolving automotive landscape dominated by electric and autonomous technologies. By leveraging partnerships with companies like Momenta and Huawei, Toyota aims to integrate cutting-edge software and hardware into its upcoming EV models, enhancing their autonomous capabilities. Additionally, Toyota’s plans to introduce an iron phosphate lithium battery by 2027, promising a 40% reduction in production costs, signal the brand’s strategic focus on cost efficiency and sustainability in its EV lineup. Opening Lexus charging stations in Japan to all EVs reflects Toyota’s proactive approach to accommodating the growing EV market and fending off rivals, particularly low-cost Chinese EV manufacturers like BYD expanding into new territories.
How is it going to shape the future?
Toyota’s introduction of a self-driving EV marks a significant step towards mainstream adoption of autonomous driving technologies, potentially reshaping the future of transportation by offering consumers advanced safety and convenience features. By investing in next-generation battery technology and forging partnerships with key players in the EV ecosystem, Toyota is positioning itself as a formidable player in the electric and autonomous vehicle markets. As the automotive industry continues to prioritize innovation and sustainability, Toyota’s strategic moves to enhance its EV offerings and infrastructure signal a shift towards a more competitive and environmentally conscious future for the brand and the industry as a whole.