Next-Gen RAV4 and Highlander Are Already Taking Shape in Chinese Labs

When one thinks of Toyota, visions arise of Japanese precision: engineers in lab coats, poring over brake calipers with micrometer exactness into the late hours. But it’s time to file that image away. Toyota is handing over the reins to China. The next RAV4, Highlander and even the Sienna won’t be born in Tokyo, but rather in the dusty development rooms of a Guangdong factory, in tight collaboration with local heavyweights.

Chinese media report that the Japanese auto giant has chosen to entrust not only its bZ-series electric cars but also its traditional gasoline models to Chinese development. FAW-Toyota will take charge of production, and R&D is already shifting decisively to Chinese soil. For the local market, this means the RAV4 and Highlander will increasingly diverge from what consumers in the West or Japan are used to. But if the models prove successful, exports to Europe and the United States are very much on the table.

Toyota’s research and development center in China is being granted more autonomy, free from the need to secure approval from Tokyo for every bolt and bracket. Supplier decisions can now be made locally. Additionally, Toyota is consolidating its Chinese operations. FAW-Toyota, GAC-Toyota, BYD-Toyota and even the digital arm IEM will be brought under a single management structure. Until now, each entity has operated like a miniature fiefdom.

Though it may sound like Toyota is selling off its Japanese soul, the company has drawn clear boundaries. An anonymous representative confirmed there will be no compromises on safety, braking systems, steering, or battery standards. But to speed things up, creative and intellectual development will be left to local teams. And don’t be surprised if the design—inside and out—of the next-generation models bears a distinctly Chinese touch. It’s all in the name of faster rollout.

There’s precedent: the bZ5 electric crossover hit the market in just a year. Without GAC, FAW and BYD, it would have taken at least three. Volkswagen has already gone down this road, so Toyota is far from alone. It’s time to get used to the idea: the next RAV4, with a heart still beating to a Japanese rhythm, might just be born in Beijing.