Toyota will reportedly begin production of range-extending EVs in China next year, markedly expanding the brand’s line-up of drivetrains in a surprising move. The plan calls for 200,000 EREVs to be produced next year, rising to 400,000 in 2028.

The report by Nikkei says the launch is planned for April 2027 and will help the brand deal with intense competition in the huge Chinese market, where EVs are thoroughly outselling their internal-combustion counterparts.

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EREVs use electric motors to drive the wheels at all times, with the petrol engine acting purely as a generator to charge the battery. Petrol-hybrid EVs, on the other hand, use both the internal combustion engine and the e-motors to put power to the road.

The EREV drivetrain is not currently available in Toyota’s product line-up, illustrating the significance of the reported plan. 

According to Nikkei’s report, Toyota sold approximately 200,000 battery-electric vehicles and 180,000 PHEVs globally. So if the EREV production targets are met and the vehicles prove popular in China, EREVs would form a huge part of the Japanese brand’s offering. 

“Competition in China is intensifying as the market fixates on battery EVs, leading to a price war among automakers,” a Toyota executive told Nikkei. “We need to take steps to avoid being dragged into that competition.” 

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EREV sales in China reached approximately 81,000 units in August. It remains unclear which models Toyota will use as the basis for its drive into EREVs, but it already makes several models exclusively for the Chinese market. These include the bZ3, bZ3x, bZ5 and bZ7. The bZ3 and bZ5 are similar to the bZ4x Australians are familiar with, but they run BYD’s Blade batteries. 

Aussies who want an EREV can currently choose from cars like Leapmotor’s C10, and Chery’s plans to bring its iCaur brand down should lead to the introduction of the V25 SUV, which also uses the technology.