Toyota to Increase Chinese-Made Components to Lower Prices

KatadataOTO – Toyota is reportedly going to use Chinese-made spare parts to produce vehicles in Thailand. These components will later be used to build electrified vehicles in 2028, including the bZ3X.

According to Paultan, Toyota is actually already using several components from China. In fact, Wuhu Yuefei New Sound-Absorbing Materials, an interior manufacturer from China, has already established a partnership with the Summit Group to set up a Joint Venture company earlier this year.

They will supply Toyota's spare parts in the future. This is the first time a major Japanese automaker has pushed for the entry of Chinese component companies into the Thai market.

Not only that, Toyota has also urged spare parts manufacturers in Japan to use products from Chinese companies. Ranging from molds produced by Zhejiang Kaihua Mould to resin materials made by Kingfa Science & Technology.

Photo : TMMIN

Toyota is using Chinese-made spare parts because their prices are more competitive, allowing production costs to be reduced. This will certainly benefit the company, especially amidst a price war.

"In Southeast Asia, we also plan to develop lower-cost electric vehicles by maximizing the use of spare parts from Chinese manufacturers, such as the bZ3X," said an executive from a major component company under Toyota.

He also revealed that compared to Japanese companies, the cost of Chinese-made spare parts is 20 to 30 percent lower.

Meanwhile in Indonesia, Toyota also plans to produce an electric car, the bZ4X. The vehicle is even set to be launched by the end of 2025.

Photo : Reuters

However, the Japanese manufacturer was reluctant to disclose the amount of Local Content Level (TKDN) that will be included in the vehicle.

“Let's not talk about TKDN yet, but the important thing is that we have started producing electric vehicles in Indonesia. This is proof that Toyota is increasingly developing electric vehicles, said Bob Azam, Vice President Director of PT TMMIN, to the media some time ago.