Toyota is increasingly switching to Chinese suppliers of electric car components, causing serious panic among Japanese auto parts makers.
According to the Japanese media, the traditional Japanese “Keiretsu” system of cooperation between car companies and long-term suppliers is beginning to seriously disintegrate under the pressure of electrification and Chinese competition.
The Toyota bZ3X reportedly uses almost 90% Chinese parts
The greatest attention was caused by the new Toyota bZ3X electric model developed in cooperation with GAC Toyota. Although Toyota officially rejects the claims of analysts, some experts estimate that almost 90% of the components of this vehicle come from Chinese manufacturers.
It is said that most of the traditional Japanese suppliers have practically lost their jobs on this project. Toyota is reportedly now planning to further increase the use of Chinese components in the Southeast Asian market as well.
Chinese manufacturers have become a serious threat to Japan
The main problem for Japanese companies is that Chinese manufacturers today offer: significantly lower production costs, very competitive quality and faster development of components for electric vehicles.
This is precisely why many Japanese companies can no longer justify the high costs of the traditional supplier system developed over decades.
A special problem is the fact that the Japanese auto industry is built around gasoline technologies such as: gearboxes, drive axles and classic transmissions. Electric cars practically eliminate a large part of these components.
Toyota admits that the old system is becoming a burden
The situation is further complicated by the fact that Toyota is now openly talking about the problems of the transition. Former company director Koji Sato previously warned suppliers that the company “will not survive” unless things change urgently.
Many analysts believe that China is the biggest reason why the Japanese car giant is rapidly changing its decades-old business model.
Chinese companies are currently managing to produce powerful electric cars at very aggressive prices, which further increases the pressure on the Japanese industry and its traditional suppliers.