Toyota officially established the China Chief Engineer System, with Chinese engineers leading product development. The Baozhi 3X has become the first model to be launched under this system, and the FAW Toyota bZ Crossover and GAC Toyota Baozhi 7 will be launched soon. This move marks Toyota's departure from the “direct import of global models” model and its shift to in-depth localized research and development. Toyota's localization process has been accelerated, with the first appointment of a Chinese as Vice Chairman and General Manager of Toyota China in January 2025, and the announcement of the construction of a wholly-owned Lexus electric vehicle plant in Shanghai in February, with the President of Global Pure Electric Vehicle Development directly in charge. Mr. Akio Toyoda emphasized that he does not seek to be the top seller, but rather to be the “best local citizen”. Product development under the new system needs to balance Toyota's global “safety and security” standards with the speed and cost requirements of the Chinese market. Toyota's battery technology is already compliant with the new national standard to be implemented in 2026. Li Hui, General Manager of Toyota China, said that the company is moving from the 1.0 era of global model import to the 2.0 era of localized R&D, and in the future will enter the 3.0 era in which China's experience feeds the global market.