At Auto Shanghai 2025, Toyota unveiled its sleek bZ7 electric sedan, a bold move to reclaim ground in China’s booming electric vehicle (EV) market, where Japanese automakers’ share has plummeted from 24.1% in 2020 to 13.7% in 2024, according to the China Passenger Cars Association. This flagship EV, developed with local partner GAC and equipped with Huawei’s HarmonyOS, showcases Toyota’s pivot to localize innovation and compete with giants like BYD and Tesla.

A High-Tech Contender for China’s EV Crown

The bZ7, stretching over 16 feet long, blends Toyota’s hallmark reliability with cutting-edge Chinese tech. Its HarmonyOS cockpit system powers a massive infotainment screen, offering AI-driven driver assistance and seamless connectivity tailored to Chinese consumers. “To deliver cars people want in China, we need Chinese brains and hands involved in development,” said Li Hui, Toyota China’s first Chinese general manager, at the Shanghai event. The sedan, likely powered by BYD’s Blade battery, aims to rival premium EVs like the Tesla Model S and BYD Han, with a launch planned by mid-2026.

Toyota’s Bz7 Electric Sedan Steals The Show At Auto Shanghai 2025, Signals Japan’s Ev Push In China

Japan’s Strategic Shift in the World’s EV Epicenter

China’s auto market, the globe’s largest, saw 31 million vehicle sales in 2024, with nearly 13 million being New Energy Vehicles (NEVs). Auto Shanghai 2025, hosting 1,366 vehicles (70% NEVs), drew a million visitors, underscoring China’s role as the EV innovation hub. Japanese brands like Toyota, Honda, and Nissan are doubling down with local joint ventures. Toyota’s bZ7, alongside Honda’s Ye Series and Nissan’s N7, integrates tech from Chinese firms like Momenta and DeepSeek, reflecting a broader trend of foreign automakers leaning on local expertise to stay competitive.

Bosch and Horizon Robotics Join the Race

German automakers, also at 13% market share, are mirroring Japan’s approach. Bosch’s new partnership with China’s Horizon Robotics, announced at Auto Shanghai, focuses on in-vehicle AI for cockpits. “We look forward to collaborating with outstanding partners like Horizon Robotics to jointly advance the global development of intelligent driving technologies,” said Bosch’s Christopher Hartung. This collaboration highlights how global suppliers are betting on China’s tech ecosystem to drive EV advancements, creating a ripple effect for smarter, safer vehicles worldwide.

EVXL’s Take: A Wake-Up Call for Legacy Automakers

The bZ7 isn’t just a car; it’s Toyota’s admission that China’s EV market waits for no one. By embracing Huawei’s tech and BYD’s batteries, Toyota is shedding its slow-to-electrify reputation, but the clock is ticking. For EV enthusiasts, the bZ7 promises a luxurious, tech-packed ride that could redefine Toyota’s global EV strategy—if it can deliver on affordability and performance. Picture cruising in a sedan that feels like a smartphone on wheels, crafted with the precision of a sushi chef. Yet, with local brands like BYD dominating, Toyota’s gamble must resonate with China’s savvy buyers or risk being left in the dust.

Photos courtesy of Toyota