Toyota Motor throws out the concept of building a “new electric vehicle platform”, and whether it will “join forces with Hon Hai” in the future has sparked heated discussions in the market

Toyota Motor (Toyota) threw out an idea on the 14th to introduce a new electric vehicle platform from traditional fuel vehicles, and is working hard towards large-scale production. Recently, Hon Hai-led electric vehicle research and development platform “MIH” has already been incorporated into Toyota’s affiliated companies. Whether the two industry giants will cooperate closely in the future has sparked market speculation.

Toyota throws out a new idea: a new electric vehicle platform

The electric vehicle industry is in the Warring States Period. On the 14th, Toyota Motor plans to launch a new one-stop platform specially designed and manufactured for electric vehicles. Toyota Motor President Akio Toyoda (Akio Toyoda) explained : “In the future, there will be a common platform that can directly manufacture various models, which is very different from Toyota’s current platform that only produces traditional cars.” It can also be said that this common platform is for everyone. A strategy for producing electric vehicles at scale and reducing costs.

The Wall Street Journal reported that the new electric vehicle platform represents an important step in Toyota’s current electric vehicle architecture. This architecture will be separated from the traditional fuel vehicle design, and an electric vehicle will be redesigned through this platform. When the parts of the electric vehicle are optimized and standardized, it will help increase production and greatly reduce costs.

According to the report, it is very difficult for traditional car manufacturers to build a profitable electric vehicle business, especially in the face of leading companies such as Tesla (Tesla) and China’s BYD (BYD).

It is worth noting that whether Toyota’s public platform will cooperate with Hon Hai (Foxconn) has sparked heated discussions. The Hon Hai-led electric vehicle research and development platform “MIH” has more than 2,200 companies joining. By 2022, the number of Japanese companies joining has soared to five times compared to 2021. At that time, Toyota Motor affiliates have already joined.

According to the “Nikkei News” report, some of these Japanese companies have begun to work with Hon Hai and others to develop parts. With the joining of Toyota-affiliated companies, traditional automakers may change the long-established traditional auto industry supply chain by tying up most parts companies. Whether Toyota Design entrusts Hon Hai to manufacture in the future has aroused market attention.

Whether Toyota’s new platform cooperates with Hon Hai has aroused market attention

In fact, it has become a trend for major technology industries around the world to enter the electric vehicle market across industries. Hon Hai intends to become a leading OEM brand of electric vehicles. As long as the production is entrusted to Hon Hai, even if it does not have a factory, it can sell its own electric vehicles. Just like the electronic foundry in the past, the industry can concentrate on software development and achieve a “horizontal division of labor” model.

As the world’s largest electric vehicle market in China, traditional car manufacturers have reported a decline in capacity utilization and even excess production lines over the past few years. According to the report of the Chinese media “Interface News”, it is not possible for fuel vehicles to adapt to the production of electric vehicles overnight.

It generally occurs, including problems such as net profit decline, rising labor costs, and depreciation of fixed assets. According to the China Passenger Federation, as of the end of 2021, the national passenger car production capacity totaled 40.89 million, and the capacity utilization rate was 52.47%. The previous year, this figure was even less than 50%.

Of course, this phenomenon also appeared in the global automaker Toyota, and the slow pace in the electric vehicle market also worried investors. According to data from research firm MarkLines, Japan’s Economic News pointed out that Chinese manufacturers will account for 40% of global pure electric vehicle sales in 2022. American and European manufacturers accounted for 30% and 20%, respectively, while Japanese manufacturers accounted for less than 5%.

Akio Toyoda stated in an interview a few days ago that many automakers are betting heavily on pure electric vehicles, which has led to an upsurge in the entire industry, but there have also been many tests. For example, as more and more companies join the electric vehicle industry, whether components and battery raw materials can be effectively supplied.

He said: “The participants in the auto industry are basically the silent majority… They are wondering if it is really OK to bet on electric cars alone? But they feel that this is the general trend, so they can’t speak out.” That means Toyota Automobile has always adhered to a diversified automobile investment strategy, including hydrogen-powered vehicles and hybrid vehicles, not just the development of pure electric vehicles. What kind of role Hon Hai will play in the Japanese auto industry in the future is expected.