Toyota, which maintains its position as the world's largest automaker in 2025, faces intense pressure to adapt to the electric vehicle (EV) era. This pressure stems from rapid industry changes driven by rivals like Tesla and Chinese manufacturers such as BYD, compelling the Japanese company to reinvent itself. The best-selling car in history, the Toyota Corolla, is set to receive a fully electric version, debuting on an entirely new platform.

Internally, Toyota acknowledges the significant challenges. "New competition and evolving technology are inevitable. Toyota's biggest risk right now is complacency," Chairman Akio Toyoda shared during a 50-minute interview on NHK on 19/7. Reinforcing this sentiment, an NHK special documentary revealed Toyota's 'top-secret' development area, where the new generation Corolla is being finalized. An engineer working there candidly admitted, "I think we are losing to China."

Toyota CEO Koji Sato and the Corolla Concept at the Japan Mobility Show 2025. Photo: Toyota

CEO Koji Sato promised the new generation Corolla would be "full of innovation". The vehicle is built on a new multi-purpose chassis, supporting all powertrain options: from battery electric vehicles (BEV), plug-in hybrid electric vehicles (PHEV), traditional hybrid electric vehicles (HEV), to internal combustion engine models. The test vehicle featured in the program boasts a design nearly identical to the Corolla Concept, which was introduced at the Japan Mobility Show in 10/2025, characterized by its low-slung profile and sporty front fascia. Several variants of this model also emerged during development, including sedan, hatchback, crossover, and GR high-performance versions.

This decision to pursue a multi-platform strategy comes after Toyota canceled the Lexus LF-ZC project last month—a flagship electric vehicle that was expected to launch with new generation battery technology and production processes. Despite some positive indicators from updated electric vehicle models for 2026, such as bZ, C-HR, and bZ Woodland, Toyota still lags in the transition to pure electric vehicles. While its strategy of offering diverse powertrain options may be effective currently, the Japanese automaker is gradually falling behind rivals in battery technology, electric powertrains, and software.

Meanwhile, BYD—which ceased producing pure gasoline-powered cars in 2022—aims to become the world's largest automaker by volume within the next 5 years, after rising to the 6th global position in 2025.

My Anh (according to Electrek)