Toyota Opens Up to Chinese EV Suppliers as Sales Targets Soar
Toyota, the Japanese automotive giant, is expanding its use of external suppliers for electric vehicle components, opening up opportunities for Chinese suppliers. This comes as Toyota aims to significantly increase its EV sales in the coming years.
Toyota's new president, Koji Sato, has pledged to accelerate the development of electric models. This could lead to an increased demand for external suppliers, including those from China. The Japanese automaker is targeting 1.5 million EV sales by 2026 and 3.5 million by 2030.
At the recent Japan Mobility Show, BYD, China's largest electric vehicle maker, and three Chinese component suppliers attended. Among them was Industrial Man, a Chinese auto supplier seeking opportunities abroad due to intense competition and low profit margins at home. Meanwhile, Sunwoda Electronics, one of the world's top 10 EV battery manufacturers, is in negotiations to supply batteries to Toyota and Nissan. Sunwoda is also building a factory in Hungary to better serve clients in the region and comply with EU policies.
Chinese auto parts makers are actively exploring overseas markets, particularly in Japan, due to fierce competition at home. Sunwoda Electronics, for instance, aims to supply power batteries to major Japanese auto manufacturers after cooperating with Nissan. Nihon Sanhua Automobile Parts, the Japanese arm of Sanhua Automotive Components, also sees an opportunity to expand in Japan's growing EV market. Toyota's expansion in EV components and increased sales targets present a significant market opportunity for Chinese suppliers.
