Toyota to Start China-Made Extended-Range EVs in April 2027, Targeting 400,000 Units by 2028

• Toyota plans to begin EREV production in China in April 2027 and raise output to about 400,000 units in 2028, Nikkei Asia reported.
• The move would expand Toyota's electrified lineup in China, following a similar step by Nissan.

Toyota Motor reportedly plans to begin producing extended-range electric vehicles (EREVs) in China for the first time in spring 2027, broadening its lineup to address intense competition in the world's largest EV market.

Production is scheduled to start in April at several hundred vehicles a month, with output targeted at about 200,000 units for all of 2027 and around 400,000 in 2028, Nikkei Asia reported on Sunday.

The plan could quickly make EREVs a major part of Toyota's electrified vehicle business. Toyota sold about 200,000 battery electric vehicles (BEVs) and 180,000 plug-in hybrids worldwide in 2025, according to the report.

Toyota's move reflects efforts by Japanese automakers, which built their strengths in conventional hybrid technology, to adapt to the Chinese market by offering more powertrain choices.

EREVs use electric motors to drive the wheels, with an onboard internal combustion engine generating electricity. This allows users to refuel, reducing their reliance on charging infrastructure during long-distance travel.

Nikkei cited a Toyota executive as saying that intensifying competition in China's BEV market was fueling price wars and that the company needed to take steps to avoid being drawn in.

However, the extended-range market Toyota is preparing to enter also faces demand pressure. The arrival of new models and brands does not mean the segment as a whole is still growing.

China's EREV retail sales totaled 81,000 units in August, down from 85,000 in July, according to China Passenger Car Association (CPCA) data compiled by CnEVPost.

EREV retail sales in China totaled 616,000 units in the first 8 months of this year, down 15.85% year-on-year. The segment accounted for 8.06% of new energy vehicle (NEV) retail sales in August, compared with 9.08% a year earlier.

Meanwhile, NEVs accounted for a record 65.2% of China's overall passenger vehicle retail sales in August. BEV retail sales reached 698,000 units that month, up 0.8% year-on-year.

More competitors are continuing to expand their extended-range offerings. Dongfeng Nissan, Nissan's joint venture in China, launched the NX8 SUV (sport utility vehicle) in April, the brand's first model to offer EREV variants.

Xiaomi (HKEX: 1810) also launched its Sky Nomad series of extended-range SUVs on September 7, expanding its vehicle lineup beyond BEVs for the first time.