EVs priced as low as US$4,500 have gained ground in China, the world’s largest auto market and top EV exporter — a hotbed of electric-car innovation.
Chinese EVs are making inroads into Japan, with Japanese courier Sagawa Express buying 7,200 electric minivans from Guangxi Automobile Group in a bid to shrink its carbon footprint.
Makers of Japanese minicars, or kei cars, have been slow to shift to EVs in their long pursuit of fuel economy gains with gasoline engines. Lacking the resources to develop EV technology of their own, Daihatsu has gone as far as to collaborate with bitter rival Suzuki Motor.
Edited excerpts from Nikkei’s recent interview with Daihatsu’s Soichiro Okudaira follow.
Q: How do you see Chinese manufacturers’ low-cost EVs?
A: They’re a threat. Chinese manufacturers are working on new mobility services such as electric kick scooters. Their car design concepts are not simply an extension of what has come before. For example, the battery and motor are cooled with air instead of water.
There may be drawbacks, like not being suitable for long drives at high speeds, but costs can be kept down by limiting the anticipated operating environments.
Our company will go back to the basics of automaking and think of new concepts for affordable EVs. We have to be able to compete on price.
Q: Daihatsu said that it will release an electric minicar in the ¥1 million (US$8,600) range in 2025. That is more expensive than some Chinese EVs.
A: I think there is surely demand for features that approach today’s minicars that have relatively spacious interiors, have luggage capacity and can seat four people. Kei cars are the right fit for Japanese roads, many of which are narrow, and anticipation is running high among delivery companies.
We’re considering electrifying our mainstay passenger car, the Mira e:S, and our Hijet commercial van, with a limited range but no change in price.
Q: How will you control the costs of batteries and other components?
A: Daihatsu is exploring multiple options, including purchasing Chinese-made batteries. It will take an investment of tens of billions of yen or more to electrify all new vehicles by 2030, so we are collaborating with our parent company, Toyota Motor. We, along with Suzuki Motor, are participating in an EV development venture jointly owned by Toyota and Isuzu Motors, and together we will develop related technology.
Q: Will your company be able to cooperate with Suzuki, your longtime rival?
A: I want us to remain serious rivals in terms of EV sales. The advantages of working together will materialize in overseas markets where we don’t compete against each other.
Daihatsu is strong in Southeast Asia while Suzuki is strong in India. We’ll be able to discuss many things, such as technological development, quality assurance and productivity.
Q: How would you see competition against Chinese-made EVs in Southeast Asia?
A: We have rolled out a hybrid-vehicle version of the Rocky compact. If we count the production process, there are cases where hybrids generate less carbon dioxide than EVs. I believe it is easier to gain acceptance by offering a variety of electrified vehicles.