Toyota prepares for China electric vehicle race

Only a day after we reported that Volkswagen, together with its Chinese partners, will invest some $12 million in its electric range for the Chinese market, Toyota has become the latest car maker to reveal electric plans for the country.

A visitor walks past a Prius Plugin Hybrid car displayed at the company's headquarters in Tokyo, Japan, May 10, 2017. [Photo: IC]

Toyota's plans, which were outlined today, include the possibility that local partners will both design and manufacture electric vehicles under the Toyota brand.

Traditionally, Chinese joint venture partners have been exactly that - a joint partner sharing varying levels of the design and manufacture processes. 

For Toyota to entrust the bulk of this work to local partners is a demonstration of the specialization that Chinese firms have in electric vehicle technology.

As we reported earlier in November, this specialization is beginning to bring benefits not just in China, but in cities around the world.

For example, the Chinese-owned London Electric Vehicle Company is already selling the most environmentally friendly London taxi ever, with technology that could in the future be used in delivery vans and domestic cars.

From 2019, strict new rules in China will come into effect, encouraging a greater number of environmentally friendly vehicles to be sold in place of diesel and petrol cars.