Research on Toyota's Localization Strategy for New Energy Vehicles in China under the Dual-Carbon Policy: A Dual Perspective of Policy Adaptation and Market Competition

Against the backdrop of China's Dual Carbon agendaencompassing carbon peaking and carbon neutralitynew energy vehicles (NEVs) have become an increasingly strategic pillar of the country's sustainable economic transformation. Adopting Toyota Motor Corporation as a focal case, this study investigates how state-led environmental policies reshape the competitive dynamics of multinational automakers within China's rapidly evolving NEV market. The study integrates case study analysis with PESTLE, SWOT, and comparative analytical frameworks to examine the institutional environment created by the Dual Carbon policy, the competitive structure of China's NEV industry, and the strategic divergences between Toyota and leading competitors such as BYD and Tesla. The findings reveal a persistent structural misalignment between Toyota's hybrid-centered technological trajectory and China's policy-driven transition toward battery electric vehicles as the dominant technological paradigm. Deficiencies in pure electric vehicle capabilities, intelligent vehicle development, and the localization of research and development and supply chain systems have collectively constrained Toyota's competitive performance in the Chinese NEV market. This study argues that, under the Dual Carbon policy regime, sustainable competitiveness for multinational automakers is contingent upon deepening localized innovation ecosystems, accelerating electrification and intelligent transformation, and enhancing the contextual embeddedness of strategic decision-making processes.