Toyota is reportedly developing a new fully electric sedan for the Chinese market in collaboration with BYD. According to Reuters, Toyota’s second production EV is expected in late 2022, with competitive pricing, a roomy cabin, and a sedan bodystyle that is still quite popular among Chinese buyers.
The electric sedan will reportedly be slightly larger than the ICE-powered Corolla, offering more space for the rear passengers. It is expected to use BYD’s latest LFP Blade lithium-iron-phosphate battery technology, something that will allow it to be more affordable than Toyota’s own electric offerings. Sources claim it will be positioned below more premium sedans like the Tesla Model 3 or Nio ET7, with a starting price under ¥200,000 ($31,392) making it a direct competitor of the upcoming baby Tesla.
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The electric sedan will be Toyota’s second fully electric model after the eTNGA-based bZ4X SUV that was recently launched in production form.
Citing its sources, Reuters states that Toyota “has struggled for years to come up with a small EV both competitive on cost in China and doesn’t compromise on comfort”. Using BYD’s tech will help the Japanese automaker to learn more about cost-cutting strategies that are making the Chinese models more affordable and quite competitive since they no longer have the design and quality disadvantage they had in the past compared to established automakers from Europe, USA, Japan, and Korea.
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Two of BYD’s current sedan models – the Qin (left) and the Han (right).
An important factor of the affordability of the new model is BYD’s lithium-phosphate batteries – that are similar to those used by Tesla in China-spec models – which despite having a lower energy density than lithium-ion units, are cheaper to produce and feature a slimmer profile.
Another reason why BYD models are cheaper than Toyotas is the difference in development strategies between the two companies, with Toyota investing a lot more time and effort in testing each component. Indicative of Toyota’s dedication to quality is that it creates three design prototypes and three manufacturing prototypes of each model before it reaches production, while BYD only makes two prototypes throughout this process.
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In any case, it is clear that BYD has gone a long way from copying the Corolla with the 2005 BYD F3, to becoming a partner for Toyota’s next electric model. Toyota engineers have tested BYD vehicles in the past, with insider sources acknowledging the progress made by the Chinese manufacturer in terms of quality, styling, and performance, offered at a significantly lower cost compared to equivalent Toyota models. This prompted the Japanese to initiate an R&D joint venture with BYD in 2020, after toying with the idea since 2018. Today, 24 engineers from Toyota and another 100 engineers from BYD are working together in Shenzhen.
The yet-unnamed electric sedan is expected to be unveiled in concept form at the Beijing Auto Show in April 2022, with the production version following later in the same year. As for the availability, it is destined to be exclusively available in China, at least for the time being. Spokespersons from both Toyota and BYD declined to comment on the report.