Beijing: Toyota Motor Corp. Will launch an all-electric small sedan in China late next year, turn to local partner BYD Four sources told Reuters that an economical but huge runaround for the flagship technology would eventually take place.
Two out of four people with knowledge of the matter described the car Electric Holy Grail For Toyota who has struggled for years to come up with a small EV It is competitive on cost in China and does not compromise on comfort.
Sources said the success was mainly due to BYD’s less bulky lithium-iron-phosphate (LFP) blade battery and its low-cost engineering know-how – a turn of the tables for a Chinese company whose popular F3 saloon is closely related to Toyota’s Corolla. was inspired. Back in 2005.
Little known outside China at the time, BYD, or “Build Your Dreams”, came into limelight in 2008 when Warren Buffett bought a 10% stake and has since become one of the largest manufacturers of so-called new energy vehicles in the world. has been made. ,
Toyota’s new EV will be slightly larger than its compact Corolla, which is the world’s best-selling car of all time. Think of it as a “big rear-seat Corolla,” said one source.
It will be unveiled as a concept car at the Beijing Auto Show in April and then launched as the second model in Toyota’s new BZ series of all-electric cars, even though it will only be on sale in China for now.
“The car was enabled by BYD battery technology,” one of the sources told Reuters. “It has more or less helped us solve the challenges we faced with an affordable small electric sedan with a spacious interior.”
It will be placed below premium EVs like Tesla’s Model Y or Nio ES6, but above the ultra-cheap Hong Guang Mini EV, which starts at just $4,500 and is now China’s best-selling electric vehicle.
Two of the four sources, all of whom declined to be named because they are not authorized to speak to the media, said the new Toyota would be priced competitively.
One said it will likely sell for less than 200,000 yuan ($30,000), a segment of the Chinese market Tesla hopes to target with a smaller car within the next two years.
A Toyota spokesperson said: “We do not comment on future products.” “Toyota considers battery electric vehicles as a way to help achieve carbon neutrality and is engaged in the development of electrified vehicle solutions of all kinds.”
A BYD spokesperson declined to comment.
‘All types of floors’
The fact that Toyota has been forced to turn to BYD to solve its low-cost EV puzzle shows just how far the competitive balance of the global auto industry has shifted over the past decade.
When Chinese vehicles were considered equal in quality, global automakers were not too concerned that they could not compete on price and left Chinese companies to control the domestic market for cheap, no-frills cars. .
But times have changed.
Toyota executives started worrying back in 2015 when BYD launched its Tang plug-in hybrid with significant improvements in styling, quality and performance. Most worryingly, it was still about 30% cheaper than comparable Toyota models.
A turning point of events came in 2017 when Toyota’s top engineering leaders, including then-Executive Vice President Shigeki Terashi, drove several BYD cars like the Tang to its proving grounds in Toyota City, near its headquarters in Japan.
Terashi later visited BYD’s headquarters in Shenzhen and drove a prototype of his Han electric car.
One of four sources who participated in the test drive said “their long-term quality is still a question mark, but the design and quality of these cars showed a level of maturity, yet they were significantly cheaper than comparable Toyota models.” Were.”
“We were all affected by that.”
Two sources said the BYD valuation prompted Toyota to form its own research and development (R&D) joint venture with BYD last year. Toyota now has two dozen engineers in Shenzhen working side by side with about 100 BYD counterparts.
Blade Champ
Toyota’s new EV comes at a time when it is facing criticism from environmental groups who say it has not committed to zero emissions. He says Toyota is more interested in increasing the commercial utility of its successful hybrid technology.
Toyota executives say they are not against battery electric vehicles (BEVs), but argue they are a silver bullet for reducing carbon emissions until renewable energy becomes more widely available. Will not be
Nevertheless, Toyota has established a division dedicated to zero-emissions cars in Japan called the ZEV factory and is developing safe and low-cost battery technologies, including solid-state lithium-ion cells, that will significantly boost the range of EVs. Will give
While Toyota has long advocated a runaround that doesn’t compromise on comfort as the best way to popularize the BEV, it has struggled to produce such a car.
One problem stems from the need to stack bulky, bulky batteries under the floor, as they eat up the interior unless the roof is raised as well – which is why so many small EV SUVs are.
In 2018, Toyota briefly explored the idea of a battery venture with BYD. That and the conversation that followed prompted Toyota’s engineers to come up with BYD’s LFP Blade battery. He described it as a game-changer because it was both cheap and free space.
“It’s the ‘scales that fell from my eyes’, which we initially dismissed because its design is too simple,” said one of the four sources.
BYD officially launched its Blade Battery in 2020.
LFP batteries have a lower energy density than most other lithium-ion cells, but are inexpensive, have a longer shelf life, are less prone to overheating and use no cobalt or nickel. Tesla already uses LFP batteries in its Model 3 and Model Y in China.
One of the sources said that a typical Blade pack is about 10 cm (3.9 in) thick when the modules are flat on the floor, about 5 cm to 10 cm thinner than other lithium-ion packs.
A BYD spokesperson said it was possible, depending on how an automaker packages the blade pack in a car.
cutting corners?
While Toyota hasn’t completely solved the puzzle of how BYD keeps coming in at a low cost, two sources said one factor may be its concise and flexible design and quality assurance process — which some Toyota engineers are cutting corners on. see as.
Sources said Toyota’s planning process is much more rigorous and thorough. Once the technologies, components and systems are decided upon at the beginning of a car’s three to four year development process, it rarely changes the design.
During this process, Toyota typically builds three design prototypes and three manufacturing prototypes. Some are driven for about 150,000 km (93,000 mi) for bullet-proof quality and reliability when tested for emissions or off-road durability.
At BYD, engineers do very few prototypes — there are usually just two — and designs can be changed by the end of two years in the process, which is a certain number at Toyota, a source said. A BYD spokesperson declined to comment.
But as a result of those last-minute changes, the technology in a BYD car is much more up-to-date than Toyota’s when it comes to market, and is often cheaper.
Four sources believe that further advances in simulation and virtual engineering, as well as the fact that BYD produces a wide range of its own components, have helped close potential gaps in quality and reliability. Has helped which may have stemmed from such last minute. design changes.
“Our challenge at Toyota is whether we dismiss BYD’s engineering approach as being too loose and too risky, or can we learn from it,” said one of the sources.
Two out of four people with knowledge of the matter described the car Electric Holy Grail For Toyota who has struggled for years to come up with a small EV It is competitive on cost in China and does not compromise on comfort.
Sources said the success was mainly due to BYD’s less bulky lithium-iron-phosphate (LFP) blade battery and its low-cost engineering know-how – a turn of the tables for a Chinese company whose popular F3 saloon is closely related to Toyota’s Corolla. was inspired. Back in 2005.
Little known outside China at the time, BYD, or “Build Your Dreams”, came into limelight in 2008 when Warren Buffett bought a 10% stake and has since become one of the largest manufacturers of so-called new energy vehicles in the world. has been made. ,
Toyota’s new EV will be slightly larger than its compact Corolla, which is the world’s best-selling car of all time. Think of it as a “big rear-seat Corolla,” said one source.
It will be unveiled as a concept car at the Beijing Auto Show in April and then launched as the second model in Toyota’s new BZ series of all-electric cars, even though it will only be on sale in China for now.
“The car was enabled by BYD battery technology,” one of the sources told Reuters. “It has more or less helped us solve the challenges we faced with an affordable small electric sedan with a spacious interior.”
It will be placed below premium EVs like Tesla’s Model Y or Nio ES6, but above the ultra-cheap Hong Guang Mini EV, which starts at just $4,500 and is now China’s best-selling electric vehicle.
Two of the four sources, all of whom declined to be named because they are not authorized to speak to the media, said the new Toyota would be priced competitively.
One said it will likely sell for less than 200,000 yuan ($30,000), a segment of the Chinese market Tesla hopes to target with a smaller car within the next two years.
A Toyota spokesperson said: “We do not comment on future products.” “Toyota considers battery electric vehicles as a way to help achieve carbon neutrality and is engaged in the development of electrified vehicle solutions of all kinds.”
A BYD spokesperson declined to comment.
‘All types of floors’
The fact that Toyota has been forced to turn to BYD to solve its low-cost EV puzzle shows just how far the competitive balance of the global auto industry has shifted over the past decade.
When Chinese vehicles were considered equal in quality, global automakers were not too concerned that they could not compete on price and left Chinese companies to control the domestic market for cheap, no-frills cars. .
But times have changed.
Toyota executives started worrying back in 2015 when BYD launched its Tang plug-in hybrid with significant improvements in styling, quality and performance. Most worryingly, it was still about 30% cheaper than comparable Toyota models.
A turning point of events came in 2017 when Toyota’s top engineering leaders, including then-Executive Vice President Shigeki Terashi, drove several BYD cars like the Tang to its proving grounds in Toyota City, near its headquarters in Japan.
Terashi later visited BYD’s headquarters in Shenzhen and drove a prototype of his Han electric car.
One of four sources who participated in the test drive said “their long-term quality is still a question mark, but the design and quality of these cars showed a level of maturity, yet they were significantly cheaper than comparable Toyota models.” Were.”
“We were all affected by that.”
Two sources said the BYD valuation prompted Toyota to form its own research and development (R&D) joint venture with BYD last year. Toyota now has two dozen engineers in Shenzhen working side by side with about 100 BYD counterparts.
Blade Champ
Toyota’s new EV comes at a time when it is facing criticism from environmental groups who say it has not committed to zero emissions. He says Toyota is more interested in increasing the commercial utility of its successful hybrid technology.
Toyota executives say they are not against battery electric vehicles (BEVs), but argue they are a silver bullet for reducing carbon emissions until renewable energy becomes more widely available. Will not be
Nevertheless, Toyota has established a division dedicated to zero-emissions cars in Japan called the ZEV factory and is developing safe and low-cost battery technologies, including solid-state lithium-ion cells, that will significantly boost the range of EVs. Will give
While Toyota has long advocated a runaround that doesn’t compromise on comfort as the best way to popularize the BEV, it has struggled to produce such a car.
One problem stems from the need to stack bulky, bulky batteries under the floor, as they eat up the interior unless the roof is raised as well – which is why so many small EV SUVs are.
In 2018, Toyota briefly explored the idea of a battery venture with BYD. That and the conversation that followed prompted Toyota’s engineers to come up with BYD’s LFP Blade battery. He described it as a game-changer because it was both cheap and free space.
“It’s the ‘scales that fell from my eyes’, which we initially dismissed because its design is too simple,” said one of the four sources.
BYD officially launched its Blade Battery in 2020.
LFP batteries have a lower energy density than most other lithium-ion cells, but are inexpensive, have a longer shelf life, are less prone to overheating and use no cobalt or nickel. Tesla already uses LFP batteries in its Model 3 and Model Y in China.
One of the sources said that a typical Blade pack is about 10 cm (3.9 in) thick when the modules are flat on the floor, about 5 cm to 10 cm thinner than other lithium-ion packs.
A BYD spokesperson said it was possible, depending on how an automaker packages the blade pack in a car.
cutting corners?
While Toyota hasn’t completely solved the puzzle of how BYD keeps coming in at a low cost, two sources said one factor may be its concise and flexible design and quality assurance process — which some Toyota engineers are cutting corners on. see as.
Sources said Toyota’s planning process is much more rigorous and thorough. Once the technologies, components and systems are decided upon at the beginning of a car’s three to four year development process, it rarely changes the design.
During this process, Toyota typically builds three design prototypes and three manufacturing prototypes. Some are driven for about 150,000 km (93,000 mi) for bullet-proof quality and reliability when tested for emissions or off-road durability.
At BYD, engineers do very few prototypes — there are usually just two — and designs can be changed by the end of two years in the process, which is a certain number at Toyota, a source said. A BYD spokesperson declined to comment.
But as a result of those last-minute changes, the technology in a BYD car is much more up-to-date than Toyota’s when it comes to market, and is often cheaper.
Four sources believe that further advances in simulation and virtual engineering, as well as the fact that BYD produces a wide range of its own components, have helped close potential gaps in quality and reliability. Has helped which may have stemmed from such last minute. design changes.
“Our challenge at Toyota is whether we dismiss BYD’s engineering approach as being too loose and too risky, or can we learn from it,” said one of the sources.
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