Toyota (7203.T) pioneered the world’s most successful hybrid car, but when it comes to purely electric vehicles, there is a need to catch up, especially in China.
The Hong Guang Mini EV, a small, no-nonsense car made by a General Motors (GM.N) joint venture and costing less than $ 5,000, is a hit in the world’s largest car market, while Toyota is its own small, low car has yet to launch. -cost electric vehicle in China.
Toyota, the world’s largest automaker, will unveil its solution at the Shanghai Motor Show on April 19: a new universal platform for electric vehicles (EVs) called e-TNGA that will support a range of models from small tours to large SUVs.
It will also showcase its electric mid-size SUV (SUV) concept, based on the e-TNGA platform, which will be sold worldwide in a few years, said two people familiar with Toyota’s plans.
Toyota’s executives have long argued for a small electric car, but the fact that he’s going first with a midsize SUV is a sign of the challenges he still faces to produce small, low-cost EVs that are also competitive, comfortable and safe. to be.
As the pressure on automakers to reduce emissions grows, Toyota is rushing to produce EVs that can compete globally with the Mini EV, Tesla’s (TSLA.O) high-end sedans, mid-range models from Volkswagen (VOWG_p.DE) and Renault (RENA .PA) and sleek EVs from Chinese startups such as (NIO.N) and Xpeng (XPEV.N).
While Toyota’s Prius hybrid became a worldwide bestseller, one of the first attempts to develop a small electric car, the eQ, was a flop.
After selling about 100 eQs in 2012, Toyota dropped it due to concerns about the limits of electric vehicles, such as their high price, short range and long charge time.
The eQ, an electric version of Toyota’s mini iQ, cost 3.6 million yen ($ 33,000), roughly the price of its mid-sized Camry.
COST CONTROL
A major problem in developing an affordable small electric car is the need to use electric powertrains that are not yet equal to those of their gasoline counterparts, say those familiar with Toyota’s plans.
Cramming large batteries into a small car is another challenge.
Many EVs have high floors because the batteries are stacked underneath, giving car manufacturers the choice of making cars much higher to give passengers plenty of space, or keeping them lower and sacrificing comfort, the sources said.
Toyota does not want to compromise on quality, comfort or performance with its small electric car, but it is aware that it needs to develop expertise in lowering the technical costs to provide such a vehicle at a price well below $ 20,000.
That expertise is exactly what GM used to create the Mini EV, which can cost as little as 28,800 yuan ($ 4,410).
The joint venture, SAIC-GM-Wuling (SGMW), is the largest manufacturer in China of no-frills vans starting at around 30,000 yuan and leveraged that cost control know-how.
“Wuling has basically just had to replace the gasoline engines in those commercial vans with simple electric powertrains,” said Yale Zhang, head of consultancy Automotive Foresight.
He expects sales of the Mini EV and its deluxe Macaron version to reach 500,000 this year.
Zhou Xing, a vice president of SGMW responsible for Wuling and Baojun’s sales and marketing, said it plans to roll out four small EVs under its brands in early 2022, bringing the model range to 10, along with more. rivals enter the market.
NATIONAL PRIDE
The Mini EV also cuts corners that would not be allowed in the United States or Europe, underscoring the challenge Toyota faces in developing a viable rival that is easy to handle in a busy city and still high quality and performance.
For example, the Mini EV has only one airbag, no passenger or side airbag to protect occupants when it rolls away.
The car has an anti-lock braking system but no stability control technology, even though its relatively long, stocky profile makes it prone to tipping over in tight corners, two people familiar with its development told Reuters.
“First of all, the product meets all of China’s vehicle safety requirements. The Hong Guang Mini EV is basically a commuting tool that helps people get from point A to B in city traffic. It is very unlikely that they will use this vehicle. will drive at speeds, ”said SGMW’s Zhou.
The no-nonsense approach has certainly not affected its appeal.
Budget-conscious Chinese customers and young, fashionable city dwellers, launched in July, buy around 100,000 mini EVs per quarter, making it one of the top EV sellers in China.
Some younger drivers buy it and other Wuling cars in part after a video of a Wuling van deftly racing down a winding mountain road went viral. For many, seeing a humble Chinese van carrying out tricky maneuvers sparked their national pride.
“I’m proud of what China-made vehicles like Wuling workhorse vans can achieve,” said Huang Peixian, 26, a small business owner in Shantou City, Guangdong Province.
“When I saw the Hong Guang Mini EV, I thought this could be a good car for me,” she said. “I am not only attracted to the car because of the low price, it is also really fun to drive.”
Many drivers personalize their Mini EVs with a new paint job and sleek head and tail lights. Some even customize their other cars, such as Audis and BMWs, with Wuling stickers and badges.
Huang went all out, coloring the interior of her Mini EV pink and dazzling characters from the Japanese cartoon series Chibi Maruko-chan on the white exterior.
GREEN CREDIT BOOST
Toyota’s electric SUV will be the first car to be produced by its new zero emissions design division in Japan known as ZEV Factory.
However, to get the cheap know-how it needs, it switched to Chinese battery and car manufacturer BYD (002594.SZ) through a joint research and development company they started last year.
The plan is to leverage BYD’s expertise in building small electric vehicles and some key components, including batteries.
But there’s still a good chance Toyota will use electric powertrain technology – a combination of the motor, inverter and gears – called e-Axle, made by its affiliate BluE Nexus, according to one of those familiar with Toyota’s plans.
The Hong Guang Mini EV also plays an important role for GM and SAIC as it generates green car credits. Car manufacturers in China must make enough New Energy Vehicles (NEV) to earn credits to offset their production of combustion engine cars.
The success of the Mini EV means GM and SAIC have the ability to sell credits to rivals or produce more, bigger, more luxurious gasoline cars without being penalized.
Automotive Foresight’s Zhang also said the green credit system means the Mini EV can be priced very competitively to the point where it barely makes a profit.
SGMW’s Zhou declined to say whether the Mini EV makes money, or how much it makes from green credits.
“We’ve seen quite a few companies come to us to buy credits from us. But we don’t want to reveal who they are,” he said.
The two sources familiar with Toyota’s plans said it had no intention of losing money on the retail price of its small electric car or using green credits to make it more competitive.
A company spokesman declined to comment on whether Toyota had enough Chinese NEV credits, or whether it would consider selling them as an integral part of its strategy.
($ 1 = 108,9200 yen)
($ 1 = 6.5280 Chinese yuan renminbi)
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