China's NEV boom boon for global auto sector

SHANGHAI — As the new energy vehicle boom continues in China, global players in related sectors are eyeing a vast array of opportunities and are exerting efforts to tap into this promising market.

At the 2024 edition of the China International Import Expo, held from Nov 5 to 10 in Shanghai, the trend is obvious — with innovation, openness and cooperation proving to be buzzwords at the trade emporium.

Focusing on sustainability and future mobility, the vehicle category at the expo featured 12 Fortune 500 automakers. Nearly 90 percent of all brands on display showcased NEV models, and the use of recyclable and bio-based materials was increasingly common.

At Toyota's display, two Crown sedans were prominently placed, with the model being among the Japanese auto giant's top sellers.

One of the sedans was a 1964 model, marking the company's first entry into the Chinese mainland, while the other was the latest intelligent hybrid version, a testament to advancements in NEV technologies that have benefited the brand's growth and followed the trend in the Chinese market.

The two models, six decades apart, symbolize Toyota's long-term growth in China.

"China is now not only the world's largest automotive market in terms of volume, but also a global leader in smart and electric vehicle development," said Xu Yiming, Toyota's head for brand and communications in China.

According to official data, NEV market share in China was just above 1 percent in 2015, but has since surged thanks to an expedited green transition of the Chinese economy.

In July this year, NEVs made history by surpassing fuel-powered vehicles for the first time in terms of market share, with retail sales nationwide hitting 878,000 units — accounting for 51.1 percent of total Chinese auto sales during the period.

To leverage NEV-related innovations achieved in China, including some of the highest levels of advancement seen anywhere in the world, Toyota has established one of its largest overseas testing and research and development centers in Changshu, Jiangsu province, and recently opened an advanced technology research center in Shanghai.

"Looking ahead, especially in the fields of electrification and smart technology, our focus is shifting toward R&D based in China," said Xu.

A few steps from the two Crown sedans was another eye-catching exhibit surrounded by visitors and professional buyers — a concept electric car in the form of a robotaxi, codeveloped by Toyota and Chinese autonomous driving company Pony.ai.

Featuring a collision-avoidance system developed using data from 20 billion kilometers of assisted driving, the new vehicle is aimed at upscaling and commercializing fully autonomous solutions.