Toyota (7203.T) was the pioneer of the most successful hybrid car in the world, but when it comes to pure electric vehicles, it has something to do, especially in China.
Hong Guang Mini EV, an unpretentious small car made by a General Motors (GM.N) joint venture, which costs less than $ 5,000, is an impressive success on the world’s largest car market, while Toyota still has not launched its own small, low-cost electric vehicle in China.
Toyota, the world’s largest carmaker, is set to unveil its solution at the Shanghai Motor Show on April 19: a new universal platform for electric vehicles (EVs) called e-TNGA, which will form the basis of a range of models , from small rollers to large SUVs.
It will also display its concept of a medium-sized sports utility vehicle (SUV) based on the e-TNGA platform, which is set to be sold worldwide in a few years, said two people familiar with Toyota’s plans.
Toyota executives have long called for a small electric runabout, but the fact that it goes first with a mid-size SUV is a sign of the challenges it still faces in producing small, cheap electric vehicles that are also competitive, comfortable and safe.
With increasing pressure on carmakers to reduce emissions, Toyota is working to produce electric vehicles that can compete globally with the Mini EV, Tesla’s high-end sedans (TSLA.O), Volkswagen’s mid-range models ( VOWG_p.DE) and Renault (RENA .PA) and stylish EVs from Chinese startups such as (NIO.N) and Xpeng (XPEV.N).
While Toyota’s Prius hybrid has become a global bestseller, one of its early efforts to develop a small EV, eQ, was a flop.
After selling about 100 equivalents in 2012, Toyota gave it up due to concerns about the limitations of electric vehicles, such as high price, short range and long charging time.
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
A key issue in developing a small, affordable electric vehicle is the need to use electric propellers that have not yet reached parity with their gasoline counterparts, said people familiar with Toyota’s plans.
Throwing bulky batteries in a small car is another challenge.
Many electric vehicles have high floors because the batteries are stacked underneath, leaving carmakers the choice to make cars much larger to give passengers enough space, or to keep them smaller and sacrifice comfort, sources said.
Toyota does not want to compromise on quality, comfort or performance with its small EV, but is aware that it needs to develop its expertise in reducing engineering costs to deliver such a vehicle at a price well below 20,000. USD.
This expertise is exactly what GM used to make the Mini EV, which can only cost 28,800 yuan ($ 4,410).
Its joint venture, SAIC-GM-Wuling (SGMW), is China’s largest manufacturer of pocketless commercial vans starting at about 30,000 yuan and has capitalized on this cost control know-how.
“Wuling simply had to replace the gasoline engines in these commercial vans with simple electric powertrains,” said Yale Zhang, head of automotive consulting at Foresight.
He expects sales of the Mini EV and its deluxe Macaron version to reach 500,000 this year.
Zhou Xing, SGMW vice president of sales and marketing for Wuling and Baojun, said he is set to launch four small EVs by early 2022 under its brands, bringing the model range to 10 as more rivals enter. market.
NATIONAL PRIDE
The Mini EV also reduces corners that would not be allowed in the United States or Europe, underscoring the challenge Toyota faces in developing a viable rival that handles easily in a crowded city and is still high in quality and performance.
The Mini EV has a single airbag, for example, with none for the passenger or side to protect the occupants if it rolls over.
The car has an anti-lock braking system, but it does not have a stability control technology, even if its relatively high and dense profile makes it prone to overturning when it turns suddenly at speed, two people familiar with its development told Reuters.
“First of all, the product meets all the safety requirements of vehicles in China. Hong Guang Mini EV is practically a shuttle tool, helping people to move from point A to B in city traffic. It is very unlikely that they will drive this. high-speed car, “said Zhou from SGMW.
The simple approach certainly did not affect his attraction.
Launched in July, Chinese customers who are cost-conscious and urban and young and trendy accumulate about 100,000 mini electric vehicles per quarter, making it one of the largest sellers of electric vehicles in China.
Some younger drivers buy it in other Wuling cars in part after a video of a Wuling van skillfully racing on a winding mountain road went viral. For many, seeing a basic Chinese truck doing difficult maneuvers tickled their national pride.
“I am proud of what Chinese-made vehicles, such as Wuling work trucks, can accomplish,” said Huang Peixian, 26, a small business owner in Shantou City, Guangdong Province.
“When I saw the Hong Guang Mini EV, I thought it might be a good car for me,” she said. “I’m not only attracted to the car because of its cheap price, it’s a lot of fun to drive.”
Many drivers customize their Mini EVs with a new paint job and elegant head and tail lamps. Some even customize their other cars, such as Audis and BMWs, with Wuling stickers and badges.
Huang came out on top, turning her pink Mini EV inside and splashing Japanese cartoon series Chibi Maruko-chan on white.
GREEN CREDIT CHECK
The Toyota electric SUV will be the first car produced by its new zero-emission vehicle design division in Japan, known as the ZEV Factory.
However, in order to gain knowledge at low prices, he turned to Chinese battery and car manufacturer BYD (002594.SZ) through a joint research and development company they started last year.
The plan is to use BYD’s expertise in building small EVs and key components, including batteries.
But there is still a good chance that Toyota will use electric propulsion technology – a combination of engine, inverter and gears – called e-Axle by its subsidiary BluE Nexus, according to one of those familiar with Toyota’s plans.
Hong Guang Mini EV also plays an important role for GM and SAIC as it generates green car loans. Chinese carmakers need to produce enough new energy vehicles (NEVs) to earn credits to offset the production of combustion-powered vehicles.
The success of the Mini EV means that GM and SAIC aim to sell credit to rivals or produce larger, larger and more luxurious petrol vehicles without being penalized.
Zhang, from Automotive Foresight, also said that the green credit system means that the Mini EV can be very competitively priced to the point where it barely makes a profit.
SGMW’s Zhou declined to say whether Mini EV makes money or how much it earns from green loans.
“We’ve seen quite a few companies come to us and buy loans from us. But we don’t want to reveal who they are,” he said.
The two sources familiar with Toyota’s plans said they did not intend to lose money on the retail price of its small EV or capitalize on green loans to make it more competitive.
A company spokesman declined to comment on whether Toyota has enough Chinese NEV loans or whether it would consider selling them as an integral part of its strategy.
($ 1 = 108,9200 yen)
($ 1 = 6.5280 Chinese Yuan renminbi)
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