Toyota is entering the extended-range electric vehicle (EREV) market, with plans to launch its first model in China by spring 2027. The company aims to produce 200,000 units in the first year, increasing that figure to approximately 400,000 units in 2028.
The EREV will be Toyota's fifth electrified vehicle category, joining its existing lineup of BEVs, PHEVs, HEVs, and FCEVs. The automaker views this technology as a strategic middle ground between battery electric vehicles and plug-in hybrids, specifically designed to compete in the Chinese market.
By shifting focus to EREVs, Toyota intends to avoid the intense price wars currently affecting the Chinese BEV sector. The company notes that EREVs allow for higher pricing compared to standard battery electric models, providing a buffer against market volatility.
Toyota is increasingly integrating Chinese technology into its production cycle. Its current electric SUV, the bZ3X, is produced by the GAC Toyota joint venture and features approximately 90% locally sourced components, including batteries from BYD and software from Momenta.
