Toyota (7203.T) was a pioneer of the most successful hybrid car in the world, but when it comes to pure electric vehicles, there are some innovations to make, especially in China.
The Hong Guang Mini EV, a small, simple car manufactured by a General Motors (GM.N) joint venture that costs less than $ 5,000, is a huge hit in the world’s largest car market, while Toyota has yet to launch. its own model -cost of electric vehicles in China.
Toyota, the world’s largest carmaker, will present its solution at the Shanghai Motor Show on April 19: a new universal platform for electric vehicles (EVs) called e-TNGA that will underpin a series of models , from small shootings to large SUVs.
It will also showcase its mid-size electric vehicle (SUV) concept, based on the e-TNGA platform, which will be sold worldwide in a couple of years, said two people familiar with Toyota’s plans. .
Toyota executives have long called for a small electric racer, but the fact that it goes first with a mid-size SUV is a sign of the challenges it still faces in producing small, low-cost electric vehicles that are competitive, comfortable and safe.
With growing pressure on vehicle manufacturers to reduce emissions, Toyota is striving to produce electric vehicles that can compete globally with the Mini EV, Tesla’s high-end sedans, Volkswagen’s mid-range models ( VOWG_p.DE) and Renault (RENA). .PA) and elegant EVs from Chinese companies such as (NIO.N) and Xpeng (XPEV.N).
Although Toyota’s hybrid Prius became a global sales success, one of its first efforts to develop a small EV, the eQ, was a failure.
After selling about 100 eQs in 2012, Toyota abandoned it due to concerns about the limitations of electric vehicles, such as their high price, short range and long charging time.
The eQ, an electric version of Toyota’s mini iQ, cost 3.6 million yen ($ 33,000), roughly the price of its mid-size Camry.
COST CONTROL
One of the key issues in developing a small, affordable EV is the need to use electric propulsion systems that have yet to achieve parity with their gasoline counterparts, people familiar with Toyota’s plans said.
Carrying bulky batteries in a small car is another challenge.
Many electric vehicles have high floors because batteries are stacked underneath, leaving carmakers the choice to make cars much taller to give space to passengers, or keep them lower and sacrifice comfort, they said. say the sources.
Toyota does not want to compromise on quality, comfort or performance with its small EV, but is aware that it needs to develop experience in reducing engineering costs to deliver such a vehicle at a price well below $ 20,000. .
This experience is precisely what GM took advantage of to manufacture the Mini EV, which can cost up to 28,800 yuan ($ 4,410).
Its joint venture, SAIC-GM-Wuling (SGMW), is China’s largest manufacturer of commercial vans without steering wheels starting at about 30,000 yuan and took advantage of this knowledge on cost control.
“Basically, Wuling has had to replace the gasoline engines in these commercial vans with simple electric motors,” said Yale Zhang, head of Automotive Foresight consulting.
Sales of the Mini EV and its exclusive version of Macaron are expected to reach 500,000 this year.
Zhou Xing, SGMW vice president in charge of sales and marketing for Wuling and Baojun, said he planned to launch four small electric vehicles in early 2022 under his brands, bringing the model range to 10 just as 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 Toyota’s challenge to develop a viable rival that is easily taken care of in a busy city and maintains a high level of quality and performance.
The Mini EV only has an airbag, for example, with no head for passengers or sides to protect occupants if it rolls.
The car has an anti-lock braking system, but lacks stability control technology, though its relatively high, rugged profile makes it prone to tipping when turned abruptly at high speed, they told Reuters two people familiar with development.
“First of all, the product meets all the safety requirements of China’s vehicles. The Hong Guang Mini EV is basically a commuting tool that helps people move from point A to B in city traffic. very unlikely to drive this car at full speed. “said Zhou of SGMW.
The simple approach has not affected its appeal.
Launched in July, cost-conscious Chinese and young and trendy urban customers achieve approximately 100,000 Mini EVs per quarter, making it one of the top sellers of electric vehicles in China.
Some younger drivers buy it and other Wuling cars partly after the video of a Wuling van skillfully competing on a winding mountain road went viral. For many, seeing a basic Chinese van doing complicated maneuvers tickled their national pride.
“I am proud of what Chinese-made vehicles like Wuling vans can achieve,” said Huang Peixian, 26, who owns a small business in Shantou City, Guangdong Province.
“When I saw the Hong Guang Mini EV, I thought this might be a good car for me,” he said. “Not only does the car attract me for its cheap price, it’s a lot of fun to drive.”
Many drivers customize their Mini EVs with new paint job and sleek rear and rear lamps. Some even customize their other cars, such as Audis and BMW, with stickers and Wuling badges.
Huang did his best, turning the inside of his pink Mini EV and splashing characters from the Japanese cartoon series Chibi Maruko-chan on the white outside.
LARGE GREEN CREDIT
Toyota’s electric SUV will be the first car produced by its new zero-emission vehicle design division in Japan, known as the ZEV Factory.
To get the low-cost knowledge he needs, however, he turned to Chinese battery and car maker BYD (002594.SZ) through a joint research and development company they started last year.
The plan is to use BYD’s experience in creating small electric vehicles and some key components, including batteries.
But there are still many possibilities for Toyota to use electric propulsion technology (a combination of engine, inverter and gears) called e-Axle manufactured by its subsidiary BluE Nexus, according to one of the people familiar with Toyota’s plans.
The Hong Guang Mini EV also plays an important role for GM and SAIC as it generates credits for green vehicles. Automakers in China need to manufacture enough new energy vehicles (NEVs) to get credits to offset their production of cars with combustion engines.
The success of the Mini EV makes GM and SAIC able to sell credits to rivals or produce larger and more luxurious gasoline vehicles without being penalized.
Zhang of Automotive Foresight also said that the eco-friendly credit system means that the Mini EV can be very competitively priced to the point that it barely makes a profit.
SGMW’s Zhou declined to say whether the Mini EV makes money or how much it earns with eco-friendly credits.
“We’ve seen a lot of companies come to us and buy us credits. But we don’t want to reveal who they are,” he said.
The two sources familiar with Toyota’s plans said it did not plan to lose money on the retail price of its small private vehicle or take advantage of 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)
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