Chinese Carmakers Challenge Toyota in Hong Kong Taxi Market

A taxi icon meets new challengers

For decades, Hong Kong’s taxis have been synonymous with durable Toyota sedans running on liquefied petroleum gas, a choice that kept fares predictable and downtime short. That familiar picture is beginning to change. A new wave of electric models from mainland Chinese automakers is appearing in the city’s fleet, backed by fresh financing, charging experiments, and ambitious orders from local operators. The shift is gradual, yet the direction is clear. Chinese brands are treating Hong Kong as both a market and a showroom for the region, pressing into a space where Toyota had few serious rivals for years.

The scale of the opportunity is large. Hong Kong has about 18,100 taxis, divided into red urban taxis, green New Territories taxis, and blue Lantau taxis. Fewer than 1 percent are electric today, but a pipeline of projects and policies aims to accelerate change. A right hand drive seven seat electric taxi from Geely’s commercial arm has secured a 1,000 vehicle order from a local operator. A Shanghai startup is building a battery swapping network for MG taxis, promising three minute energy refills if the stations spread across the city. A local distributor working with a unit of Chery wants to launch thousands of electric taxis with help from a new government backed loan scheme. These moves do not dethrone Toyota overnight, yet they give owners and drivers choices that did not exist a few years ago.

The stakes are high for everyone involved. For operators, the question is whether lower fuel and maintenance costs will outweigh new risks around charging queues, battery health, and higher upfront prices. For passengers, cabin layout and luggage space are improving as vans and people movers enter the fleet. For policymakers, taxi electrification is a visible test of climate goals in a dense city where land is tight and road space is precious. The next two years will reveal how fast the new entrants can turn trials into daily habits on Hong Kong’s streets.

Why Toyota ruled Hong Kong streets for decades

Toyota’s prolonged dominance grew from simple math and hard won trust. The Crown Comfort and later Toyota sedans were tough, easy to service, and supported by a deep network of workshops and parts suppliers. When Hong Kong backed a shift to liquefied petroleum gas in the early 2000s, taxis moved rapidly off diesel. LPG fueling took minutes, which fit the intense two shift schedule that many taxis follow. The cars racked up massive mileages with predictable maintenance and resale values. A driver finishing one 12 hour shift could hand over a car that was fueled and ready to go. The entire ecosystem, from fueling stations to spare parts, was tuned to make Toyota ownership low risk.

Even after production of legacy taxi sedans ended in Japan years ago, many operators kept their vehicles on the road with careful upkeep. Habit played a role, but so did a realistic assessment of alternatives. Early electric cars were costly, charging was slow for a commercial duty cycle, and the risk of stranded time felt unacceptable. That left Toyota in a commanding position while rivals worked out the right products and support models for Hong Kong’s unique operating environment.

The new wave of Chinese electric taxis

Chinese carmakers and mobility startups now see an opening. They are pairing purpose built electric vehicles with new fueling models, and they are working with local taxi associations and financiers to tackle the adoption hurdles that derailed earlier attempts. The push combines three distinct approaches: a compact crossover style taxi from BYD that showed the potential of zero tailpipe emission service, a seven seat electric van from Geely’s Farizon brand that emphasizes space and practicality, and a battery swapping system for MG taxis designed to remove charging downtime altogether.

BYD showed what was possible a decade ago

An early milestone came in 2013 when BYD put its e6 electric taxis on Hong Kong roads. The move demonstrated that an all electric taxi could work in the city, yet it also exposed the limits of the time. Vehicles were expensive, private sales lagged, and charging infrastructure did not match the needs of high mileage fleets. BYD’s founder, Wang Chuanfu, framed the prize in striking terms during that period.

Wang, who built BYD from a battery maker into a global automaker, argued that cleaning up taxis and buses could deliver a step change in urban air quality. His view remains a reference point for policymakers who see commercial fleets as the quickest route to visible emissions cuts.

Wang Chuanfu, founder of BYD, said in 2013 that replacing all of Hong Kong’s 18,000 taxis and 12,000 diesel buses with electric vehicles would reduce emissions by 50 percent, the same as taking 800,000 private cars off the road.

Geely’s Farizon targets fleets with a seven seat taxi

Geely’s commercial brand Farizon is bringing a different proposition. Instead of a compact sedan, it has engineered a large electric van for taxi duty with a focus on passenger comfort and luggage. The seven seat taxi, shown in Hong Kong in right hand drive form, features a power sliding side door with a wide opening, a low step for easy entry, and a hidden B pillar design that creates a wide corridor when doors are open. Inside, three rows of seats and a tall cabin make room for families and their bags. The rear double doors open wide to reveal a 630 liter cargo area that fits up to six large suitcases, a configuration that is welcomed by airport travelers.

Under the floor, Farizon uses a platform with cell to pack battery technology that improves body rigidity and space usage. The taxi’s driving range reaches up to about 370 kilometers on a full charge, and the battery can be charged from 20 percent to 80 percent in around 30 minutes on a high power charger. A local operator, Big Bee taxi, has placed an order for 1,000 units. That single deal, once delivered, would move the electric share of the city’s taxi fleet off the baseline and give Farizon a visible presence from Kowloon to the airport.

Battery swapping arrives with MG taxis

Another experiment underway tackles the core pain point for taxi drivers, time spent waiting at a charger. In an industrial district near the container port, a small station demonstrates battery swapping for MG electric taxis. A driver pulls onto a platform, the depleted pack is lowered and replaced with a charged unit, and the car exits the kiosk in under three minutes. The company behind the system plans to build a network of stations across Hong Kong. It is aiming for a handful of sites in the near term and more than 200 stations once the model proves itself. The promise is straightforward. If swapping points are dense enough, an MG taxi can run two long shifts with no long charging stops. That could make electric taxis viable for operators who see conventional charging as too slow for high utilization fleets. The challenge is equally clear. Land is expensive, site approvals take time, and enough drivers need to join for the economics to work.

Chery backed push via New Energy and local partners

In parallel, a local distributor working with a subsidiary of Chery is lining up a larger rollout. The plan, branded locally and structured with partners, targets the introduction of 5,000 electric taxis over time. Two early supports make the pitch more attractive. The Hong Kong Mortgage Corporation has launched a loan scheme to help taxi owners finance electric vehicles, and the distributor is bundling vehicles with charging services and after sales support. A related program focuses on mobility for the elderly and people with disabilities, signaling that the new models can be tailored for social service use, not only airport runs and urban trips.

Why adoption remains low for now

The numbers are still small because real constraints stand in the way. Only a fraction of public chargers in Hong Kong deliver the high power needed to refill an EV quickly. Out of roughly 11,000 public charging points, only about 2,000 are fast chargers. Taxis run long hours and cannot afford long dwell times during a shift, so drivers hesitate to rely on chargers that may be occupied or underpowered. Many taxi ranks and roadside stops have no charging at all, and installing new hardware faces building approvals, grid connection limits, and competition for scarce space.

Taxi ownership structures also matter. Cars are often owned by investors and leased to drivers on daily or shift contracts. That splits the benefits and risks of switching to electric. Lower energy and maintenance costs help the driver, but the upfront price, battery warranty, and residual value are felt by the owner. Battery swapping introduces another layer. The car is purchased without the battery, then the operator pays a subscription for access to the swap network. That can reduce capital cost but it introduces a monthly fee and reliance on a third party network. Until the infrastructure is proven and the contracts are clear, many owners prefer to keep a known Toyota running rather than gamble on a new model and a new fueling method.

Battery swapping or fast charging for taxi duty

Two fueling models are competing for the driver’s trust. Fast charging uses high power chargers to refill a taxi in a short stop, often 20 to 40 minutes for a meaningful top up. Battery swapping removes the stop by changing the pack in a few minutes, but it requires a standardized battery and a dense network of stations.

How fast charging fits taxi shift work

With fast charging, a driver can plan one or two short top ups during a shift. A purpose built taxi with a tall roof and space for luggage can be designed around a pack that supports repeated high power charging with careful thermal management. The Farizon taxi, for example, claims a 20 to 80 percent charge in about half an hour, which may fit a meal break or a mid shift pause. The catch is predictability. If a charger is busy or out of service, the day’s plan falls apart, and waiting in a queue costs money. Peak electricity tariffs and demand charges can also make daytime charging more expensive than off peak hours, which may not align with heavy taxi traffic.

What a viable swap network would need in Hong Kong

Swapping reduces downtime, which is attractive in a city where taxis run almost continuously in two shifts. The limiting factor is coverage. Hong Kong’s land market is tight, and finding space near airports, tunnels, and busy districts is difficult. A network that leaves gaps forces detours that eat into the time savings from a three minute swap. Standardization is another issue. Swapping works best when many taxis share the same pack design, which explains why pilots begin with one model and one operator cluster. If a subscription can be priced below the energy and time savings and stations are located at strategic nodes, taxi adoption could accelerate. Without density, swapping becomes an interesting demo rather than a daily tool.

The economics of switching for owners and drivers

The case for electric taxis rests on operating costs. Energy is cheaper than fuel, and electric motors have fewer moving parts than petrol or LPG powertrains. Studies of taxi duty cycles suggest fuel savings of more than 70 percent for comparable mileage. Brake wear falls with regenerative braking, and oil changes disappear. Over a year, a high mileage taxi can save thousands of Hong Kong dollars in energy and maintenance, which supports either lower lease rates for drivers or better margins for owners.

Upfront costs remain higher, which is why financing matters. The Hong Kong Mortgage Corporation’s loan scheme is designed to help taxi owners spread the purchase cost of an electric vehicle over time. Manufacturers and distributors are pairing that with warranties that cover battery health over long mileages. Battery swapping, if chosen, shifts some of the battery risk to the network operator, while adding a monthly subscription fee. Owners will measure these variables against the reliability and resale value of their current Toyota sedans.

Fleet contracts can speed the transition. A taxi company that orders hundreds of vehicles can negotiate service terms, charging access, and spare parts support, and it can centralize maintenance to keep utilization high. That may be why early orders are coming from organized fleets rather than individual owners. If those fleets show strong uptime and driver acceptance, smaller owners are likely to follow.

Vehicle design and rider experience

Electric taxis arriving in Hong Kong do more than swap engines. The Farizon seven seat taxi puts space and access at the center of the design. A power sliding side door with a wide opening and a low step eases entry, while a hidden B pillar configuration creates a clear path from the curb to the second and third rows when doors are open. Cabin height around 1.34 meters allows most passengers to sit down without crouching, and USB Type C ports in each row support the modern expectation that everyone can charge a phone. The rear cargo bay fits multiple large suitcases, which reduces the luggage Tetris that many airport drivers know well.

These practical touches matter in a city of families, visitors, and business travelers. They also broaden the fleet’s capabilities. A seven seat taxi can handle group trips that would otherwise require two vehicles. New mobility programs aligned with social services point to future variants that can accommodate wheelchairs or specialized seating. Geely’s experience building the London taxi under the LEVC brand shows how a manufacturer can design cabs around accessibility and turning circle requirements. Hong Kong’s needs are different, but the lesson carries over, purpose built cabins improve service quality and can lift driver income on busy routes like the airport and cross harbor corridors.

Why Hong Kong is a showcase for Chinese brands

Hong Kong offers something rare, a dense, international city with right hand drive roads, heavy airport traffic, and a global media spotlight. A taxi fleet filled with new Chinese electric models is a rolling advertisement for regional buyers, including those in Southeast Asia. When a local operator commits to 1,000 vehicles or a startup begins building a citywide swapping network, visitors and investors take note. The city’s mix of languages and visitors gives automakers feedback on cabin layout, ride comfort, and software features that can feed into export programs.

Chinese companies bring momentum from rapid gains in private EV sales. BYD, which started as a battery maker and grew into one of the largest automakers in China, has surged in overseas markets and has built a reputation for affordable, reliable electric models. In Hong Kong, Chinese brands have taken share in the private market this year, underscoring how quickly consumer sentiment can shift once vehicles prove their value. Taxi adoption tends to lag private buyers because the duty cycle is tougher and the economics are more complex. Once the business case is met, changes happen quickly because taxis cover so many kilometers per year and replacements ripple through the fleet.

What happens next for Hong Kong taxis

The next phase will be decided by execution on three fronts. First, deliveries. If the 1,000 Farizon taxis arrive on time and enter service smoothly, they will immediately change what passengers see at ranks and on arterial roads. Second, infrastructure. If battery swapping grows beyond a handful of sites and if more high power chargers open near taxi stands and depots, drivers will trust that an electric taxi can complete two shifts without drama. Third, finance and support. Loan schemes, warranties, and fleet service agreements must line up to reduce perceived risk for owners who are used to the certainty of Toyota’s older platforms.

Toyota is not standing still. The company has hybrid and electric strategies across Asia, and it retains goodwill among drivers and workshops in Hong Kong. The emerging scene looks more competitive and more mixed. Legacy LPG sedans will remain in service for years, while new electric vans and compact crossovers expand their footprint in areas where charging or swapping is convenient. If the early projects hit their milestones, the share of electric taxis will move from a rounding error to a visible share of the fleet. Passengers will notice quieter rides, more luggage space, and different silhouettes at the curb. The city will get cleaner air and a better test bed for broader commercial electrification across vans, buses, and light trucks.

Key Points

• Hong Kong’s taxi fleet has long relied on Toyota LPG sedans, valued for durability, quick refueling, and a deep service network.
• Fewer than 1 percent of the city’s roughly 18,100 taxis are electric, but new orders and projects aim to accelerate adoption.
• Geely’s Farizon secured a 1,000 vehicle order for a right hand drive seven seat electric taxi with fast charging and a spacious interior.
• A battery swapping model for MG taxis promises three minute energy refills if a dense network of stations is built across Hong Kong.
• A Chery linked distributor plans a rollout of up to 5,000 electric taxis, supported by a Hong Kong Mortgage Corporation loan scheme.
• Charging scarcity, land constraints, and split owner driver incentives are the main barriers to faster electrification today.
• Fast charging and battery swapping offer different trade offs for taxi duty, with predictability and network density the deciding factors.
• Lower energy and maintenance costs strengthen the business case, while warranties and financing aim to reduce upfront risk.
• Passengers can expect quieter rides, larger cabins, and better luggage space as vans and people movers enter the taxi fleet.
• Progress will hinge on timely deliveries, reliable infrastructure, and service support that matches the certainty of legacy Toyota taxis.