Toyota and Honda, two of Japan’s largest automakers, are reportedly moving away from their long-held focus on proprietary technology by adopting Chinese electric vehicle (EV) platforms and software. This shift marks a notable change in strategy aimed at competing in China’s fast-moving EV market and improving cost efficiency.
Honda’s Struggles Prompt Change
Honda has faced sharp declines in its Chinese sales between 2023 and 2025. The company’s insistence on developing its own EV architecture, despite longstanding partnerships with GAC, resulted in higher costs and delays. According to reports, Honda’s EVs ended up costing over 100,000 yuan (approx. €13,000) more than similar Chinese models.
- Honda stuck to proprietary tech initially with GAC joint venture.
- Market response was poor due to high prices and late product launches.
- Honda CEO Toshihiro Mibe engaged directly with GAC to address these challenges.
Toyota Embraces Localized EV Technology
Learning from Honda’s difficulties, Toyota is proactively integrating Chinese-developed EV technology, particularly for its bZ7 electric sedan targeted at China. The car includes infotainment and digital systems sourced from local partners, cutting development times significantly.
- Upcoming bZ7 model uses Chinese EV platforms and software.
- Development times reduced by leveraging local tech expertise.
- Plans announced for a Shanghai facility to build electric Lexus models by 2027.
Strategic Implications Beyond China
Although companies describe this as a China-specific approach, the new engineering and software solutions developed there are expected to influence Toyota and Honda’s EV offerings worldwide, including markets like Europe, India, and the U.S. This represents a pragmatic response to stiff competition from Chinese EV makers, who can develop and bring models to market faster and more affordably.
Why This Matters
This shift signals a major change for Japanese automakers traditionally proud of their in-house engineering and long development cycles. By outsourcing key EV components and software, Toyota and Honda aim to stay competitive but also face questions about maintaining their core brand identity based on reliability and proprietary technology.
Source: clubalfa.it