Batteries are not enough, and Toyota also needs to use the super hybrid DM-i. Can Toyota, which seeks technical support from BYD, stand up again?

On May 9, it was widely rumored in the automobile market that Toyota's joint venture in China will introduce plug-in hybrid models in the next two to three years. The technology source of these plug-in hybrid models may be BYD's super hybrid DM-i system.

If the news is true, then BYD's first sedan, the F3, is actually a high imitation of the Toyota Corolla.

So, twenty years later, why have the positions of Toyota and BYD been reversed?

Is Toyota accepting its fate by using BYD's technology?

Toyota's strength is self-evident. It has been the world's top automaker for four years, with annual sales exceeding 10 million units. With Volkswagen unwilling to continue the fight and Chinese automakers turning to new energy, no manufacturer can dethrone Toyota in the short term.

But Toyota's "crown" was achieved in the fuel vehicle market. In the booming new energy market, its performance can be described as terrible.

So far, Toyota's best-selling new energy vehicle in China is the Toyota bZ3, which has barely reached an average monthly sales of 3,000 units thanks to online car-hailing orders. The Toyota bZ4X, which Toyota has carefully built itself, has an average monthly sales of even single digits.

Ironically, the Toyota bZ3 uses BYD's blade batteries and motors. In other words, Toyota has nothing to show for itself in both technology and products. Sometimes, even good wine needs to be hidden in a remote alley, but Toyota really doesn't have wine.

In fact, this is not the worst. The rise of new energy vehicles has seized a large part of the fuel vehicle market. In April 2024, Toyota's sales in China were only 108,700 vehicles, a year-on-year drop of 26.4%. Many of its main models were besieged by BYD.

New energy vehicles are not popular, and fuel vehicles are being "stolen". At this point, it would be naive for Toyota to look down on new energy vehicles. The best way to change this situation is to launch new energy vehicles that can be sold in large quantities as soon as possible.

But the dismal performance of Toyota bZ4X proves that Toyota really has nothing to show for itself, so there is only one way left: find a Chinese manufacturer with technology and seek technical cooperation. Regardless of face, Toyota must first come up with a mature new energy vehicle model in the shortest possible time.

To sum it up in one sentence: Toyota has accepted its fate. It has to develop new energy, but it cannot do it well on its own. So it is only natural for it to turn to BYD, a technology giant.

How will Toyota and BYD cooperate?

In fact, there is no obstacle for Toyota and BYD to cooperate.

As early as April 2020, the joint venture between Toyota and BYD was established. The Toyota bZ3 was jointly created by FAW, BYD and Toyota.

BYD is open to cooperating with Toyota. As early as 2017, Wang Chuanfu decided to break BYD's previous vertical integration model and seek to supply parts to other companies. Toyota is willing to purchase BYD's batteries, motors, and super hybrid DM-i systems, which BYD is more than happy to do.

So does Toyota have the sincerity to cooperate?

We know that Toyota has a large number of hybrid models and has deep accumulation of hybrid technology. However, these Toyota hybrid models are improved versions of traditional fuel vehicles. They cannot be charged, cannot be equipped with new energy license plates, and have a relatively low level of intelligence. In the Chinese market, they are not regarded as new energy models by the outside world.

Even so, Toyota is unlikely to completely abandon these hybrid models and turn to plug-in hybrid models. The cooperation between the two parties is more likely to be: Toyota will take out one or two heavyweight models, install BYD's super hybrid DM-i system, and sell them with Toyota's logo.

This is actually the same model as Toyota bZ3, but Toyota bZ3 only uses BYD's batteries and motors, while this time it is going to use a complete plug-in hybrid system. Toyota is now in a difficult situation to turn around, and its hybrid models have a wide influence around the world. Even if Toyota wants to develop plug-in hybrid models, it is unlikely to overthrow the dominant position of hybrid models.

With the super hybrid DM-i, can we stand up?

From an objective point of view, Toyota does not rule out cooperation with Chinese manufacturers.

In addition to BYD, Toyota also has cooperation with Huawei. The ninth-generation Toyota Camry, which was launched some time ago, uses Huawei HiCar for its car system and its intelligent voice recognition system is also jointly developed with Huawei, which proves that Toyota is not rigid.

The question now is, can Toyota, with its super hybrid DM-i, stand up? I'm afraid it's not that optimistic.

First, Toyota is unlikely to get the latest version of the super hybrid DM-i, because BYD will take into account the competitive relationship between the two. Like Toyota, BYD is also a giant manufacturer with a large scale, and the two manufacturers are direct competitors in various market segments, so BYD will only sell the super hybrid DM-i technology that is about to be eliminated to Toyota.

Before the rise of domestic cars, foreign brands transferred obsolete technologies to Chinese automakers. So Toyota's chances of creating first-class products with BYD's outdated technology are greatly reduced.

Secondly, even if BYD is really sincere and willing to share the latest version of the super hybrid DM-i technology with Toyota, Toyota may not be able to come up with a car model comparable to BYD. The reason is simple. The power system is indeed important, but it is not the whole of a car. Toyota also has considerable shortcomings in smart cockpits, smart driving and other aspects. The super hybrid DM-i system cannot solve all problems.

Of course, it can also seek cooperation with other Chinese manufacturers, but if all core components are purchased from Chinese manufacturers, is Toyota still Toyota?

91che believes that as domestically produced cars become more and more prominent, foreign brands like Toyota have little room to maneuver in the new energy market. If Toyota really adopts BYD's super hybrid DM-i technology, it may be able to recover some of its losses, but it is ultimately a temporary solution. If nothing unexpected happens, it will be difficult for Toyota to make a comeback in China's new energy market.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.