Adapted by:
Alberto de la Torre
WriterI've been a journalist and audiovisual communicator since 2016. My specialty is the automotive sector, where I’ve been analyzing the industry and its developments for more than five years. I'm particularly interested in new forms of mobility and the changes that cities are experiencing, especially in urban planning and the promotion of cycling and personal mobility vehicles.
Alba Mora
WriterAn established tech journalist, I entered the world of consumer tech by chance in 2018. In my writing and translating career, I've also covered a diverse range of topics, including entertainment, travel, science, and the economy.
Toyota is the world’s largest car manufacturer, having sold nearly 11 million vehicles last year. However, its sales figures for 2024 can be viewed in two distinct ways.
First, there’s the optimistic perspective. Despite advocating for the shift to electric vehicles, Toyota continues to focus on hybrid technology. This has allowed the company to maintain its status as the world’s best-selling car manufacturer. While Toyota’s involvement in electric vehicles has been minimal so far, the company aims to enter the market effectively, even if it’s later than its competitors.
On the other hand, a pessimistic view suggests that Toyota is losing ground. Global sales have declined by 3.7%. While the company is making steady progress in the U.S. thanks to its hybrid offerings, it experienced a significant drop of 6.9% in China. The market’s intense competition poses a threat to several brands. Falling behind in the world’s largest automotive market may prove to be a challenging obstacle in the future.
2024 marked the third consecutive year that Toyota experienced a sales decline in China, which is the largest market for electric cars. Until recently, Toyota’s presence in the country was minimal, with the company only selling the Toyota bZ3 until this year.
Toyota has confirmed the upcoming release of the Toyota bZ3X, an affordable SUV, along with the Toyota bZ7, both in collaboration with the local company GAC. However, offering just three electric models pales in comparison to the extensive range provided by competitors such as BYD and Geely, which boasts numerous brands.
Additionally, the Chinese market rewards more than just a good car. It also emphasizes the quality of interiors and, more importantly, the software features. Consumers are drawn to innovative technology, which can even turn car interiors into karaoke lounges.
This shift in consumer preferences has disadvantaged Western manufacturers, given that they struggle to understand what resonates with Chinese customers. Toyota’s approach is to collaborate with local experts who understand the market best.
Toyota Joins Forces with Xiaomi and Huawei
In response, Toyota has chosen a fast but strategically savvy path: forming alliances with Xiaomi and Huawei. This collaboration positions Toyota’s products within the digital ecosystems of these companies, which already offer a suite of interconnected devices for consumers.
Since the launch of the Xiaomi SU7, the company has emphasized seamless communication between the smartphone and the car. As such, it’s effectively transformed the vehicle into an extension of its extensive array of smart home products. A key feature of this integration is HyperOS.
The connection between this operating system and phones is significantly deeper than that offered by Apple CarPlay and Android Auto. HyperOS replicates relevant information across five displays and incorporates its own apps. It also enables information from the phone to be mirrored on the vehicle’s screens.
This system even allows Apple CarPlay to be integrated with the base operating system. It displays it on both the central and rear screens while HyperOS runs in the background on the instrument panel or Head-Up Display. The same functionality applies to Android Auto.
Huawei’s HarmonyOS follows a similar approach in its vehicle software, employed alongside manufacturers such as Aito, Chery, and JAC. Notably, these companies use their own chips, aiming to reduce reliance on U.S. technology.
In 2021, Huawei introduced HarmonyOS, designed as a multi-platform software to unify its product ecosystem. The idea is that anyone who owns a Huawei phone would naturally gravitate toward a car that enhances their overall user experience.
Like Xiaomi, Huawei is positioning itself as an appealing choice for customers in the high-end or luxury vehicle market, as demonstrated by this YouTube video.
In contrast, Toyota’s investment in software development has been minimal until now. Although the company announced plans to allocate more resources for its operating system, it recognizes the risk of falling behind the competition.
To counter this challenge, Toyota is collaborating with both Chinese tech giants. As a result, the Toyota bZ7 will be equipped to use both operating systems, each leveraging its own AI advancements. For instance, Toyota is working with Huawei on personal identification technology, allowing users to activate their profiles with a simple voice command.
In addition to partnerships with Xiaomi and Huawei, Toyota has also allied with Momenta. The Chinese company will help Toyota advance its autonomous driving systems, a market of significant interest in China. In fact, the Chinese government has had to caution manufacturers against overestimating their capabilities in relation to consumer expectations.
Image | Shen Liu
View 0 comments