Toyota to produce extended-range electric vehicles in China

Toyota is reportedly planning to enter the extended-range electric vehicle (EREV) market in China, with production expected to begin in April 2027. According to reports from Nikkei Asia, the automaker aims to produce approximately 200,000 EREV units in 2027, scaling up to 400,000 units by 2028.

Unlike traditional hybrids or plug-in hybrids, EREVs use an electric motor to drive the wheels while a small internal combustion engine acts solely as a generator to recharge the battery. This technology aims to provide an electric driving experience while mitigating range anxiety and reducing dependence on charging infrastructure.

The move is seen as a strategic response to the intense competition and price wars within the Chinese battery electric vehicle (BEV) market. By offering EREVs, Toyota seeks to appeal to consumers who are not yet ready to transition fully to pure electric vehicles. While specific models and Chinese manufacturing partners, such as FAW or GAC, have not been officially confirmed, the strategy aligns with Toyota’s long-standing multi-pathway approach to electrification.