(Yicai Global) Oct. 26 -- Japan's Toyota Motor has debuted its second pure-electric vehicle in the Chinese market in collaboration with local carmakers BYD and FAW Group.

The Aichi prefecture-based auto manufacturer yesterday introduced the BZ3, an electric sedan, in China, following the launch of the BZ4X, its first global battery electric vehicle, two weeks ago.

Spearheaded by startups such as Nio, Xpeng Motors, and Li Auto, China's new energy vehicle market has entered the second stage involving the process of making cars smart, according to a report published by PricewaterhouseCoopers. The competition is intensifying while foreign brands such as Toyota need to accelerate the launch of new NEV models while localizing their products.

Toyota's latest model is a fruit of cooperation with local partners. The car's battery and electric machinery are provided by BYD. The pair set up a joint venture called BYD Toyota EV Technology in 2020. The BZ3 is planned to be manufactured and sold by FAW Toyota Motor, a JV between Toyota and the Jilin province-based carmaker.

Toyota is expected to soon unveil a new electric sedan brand, which is jointly developed with BYD, to enrich its product portfolio in China, the Nikkei reported recently. Market insiders believe that the collaboration between Toyota and the Shenzhen-based carmaker will to some degree reduce their costs.

Foreign companies used to dominate in terms of technologies during earlier Chinese car JVs. But in terms of NEVs, domestic firms have become exporters. Evidently, among Toyota and BYD, it is the Chinese partner that is contributing the core technologies.

Toyota has accumulated much experience in hybrid and hydrogen vehicles but not as much in the pure-electric segment. But China’s rapid NEV growth has prompted Japanese carmakers to accelerate their investments in pure-electric cars.

Toyota has strengthened its investments in hydrogen technologies in China. It held a groundbreaking ceremony for a research and development project of fuel cells in the Beijing Economic-Technological Development Area yesterday to gain a foothold in the emerging clean energy vehicle market.

The company said last year that it intends to launch 15 pure-electric models worldwide before 2025. Its figure for the Chinese market is 10, making up half of the firm's total offering.

Editors: Shi Yi, Emmi Laine, Xiao Yi