Toyota’s New EV with Advanced Self-Driving System: Coming to China in 2025

Toyota Motor Corp. (7203.T), opens a new tab, plans to launch its first electric car model with an advanced autonomous driving system similar to that of Tesla (TSLA.O) in the Chinese market next year, one of the company’s Chinese officials joint ventures said.

Its joint venture with state-run Guangzhou Automobile Group (601238.SS), opens a new tab (GAC), aims to regain the Japanese automaker’s market share in China by catching up with Chinese rivals in hybrid, battery and intelligent vehicle technologies.

The joint venture announced a slew of innovation goals at an event in Guangzhou on Friday.

GAC Toyota said it will launch the Bozhi 3X SUV next year. The first model with the system will provide advanced driver assistance for parking and navigation on highways and in urban traffic. This will ensure its leadership in autonomous driving technology among all foreign brands in China, the company said.

GAC Toyota is developing the system with Momenta Global, a startup that develops self-driving software for automakers such as Mercedes-Benz (MBGn.DE).

The company is also working with Huawei (HWT.UL) to start using the company’s in-vehicle operating software in an electric sedan due for release in China in 2025.

The company also said it will launch lithium iron phosphate batteries in 2026 and 2027, which could reduce the production costs of the bZ4X EV by 40%.

Data from the China Association of Automobile Manufacturers showed that Toyota ranked fifth among all brands in car sales in China in the first half of this year, but Japanese brands saw a 22% drop compared to the same period in 2023.