Toyota, the world’s largest automaker, has been slow to embrace the transition to electric vehicles (EVs), preferring to focus on its hybrid and fuel cell technologies. However, the company has recently announced a new strategy that aims to boost its EV sector and compete with its rivals in the global market. Toyota plans to introduce 10 new EV models by 2026, including a three-row SUV for the U.S. market, and to achieve 1.5 million EV sales annually by the same year. The company also intends to develop a next-generation platform for its EVs, which will offer double the range and lower costs. Toyota’s new strategy reflects the increasing pressure from governments and consumers to reduce carbon emissions and adopt zero-emission vehicles.
Toyota has long been a leader in the hybrid car segment, with more than 20 years of experience since launching the first Prius. The company has sold over 15 million hybrid vehicles worldwide, and has a diverse portfolio of electrified products, including plug-in hybrids and fuel cell vehicles. Toyota believes that its hybrid technology is a more practical and efficient way to reduce its overall environmental impact, as it can be applied to various types of vehicles and markets. Toyota also argues that EVs are not the only solution to the climate crisis, and that other factors, such as renewable energy sources and infrastructure, need to be considered.
However, Toyota’s cautious approach to EVs has been criticized by some industry experts and environmental activists, who accuse the company of being behind the curve and resisting change. Toyota lags behind its competitors, such as Tesla, Volkswagen, and Hyundai, in terms of the number of EV models it offers and the market share it holds. Toyota also faces the challenge of meeting the stricter emission standards and regulations that many countries have imposed or plan to impose in the near future. For example, the European Union, China, and Japan have set targets to ban the sale of new gasoline and diesel vehicles by 2035 or earlier, and the U.S. may follow suit under the Biden administration. These policies will require Toyota to accelerate its electrification efforts and expand its EV lineup.
To address these challenges, Toyota has announced a new strategy that will increase its focus on EVs, while maintaining its multi-pathway approach that includes other electrified technologies. Toyota’s new president, Koji Sato, who took over from Akio Toyoda in January 2023, has vowed to “change the future of the car” and “implement electrification” as the first step. Sato has revealed that Toyota will launch 10 new EV models by 2026, covering various segments and regions. Some of the models that have been confirmed or hinted at include:
- A compact EV and an EV pickup truck for the Asian market, to be launched in 2023.
- Two new EV models for the Chinese market, to be launched in 2024, in addition to the bZ4X SUV and the bZ3 sedan that are already available there.
- A three-row EV SUV for the U.S. market, to be produced in the U.S. and use batteries made in Toyota’s North Carolina plant, to be launched in 2025.
- A production version of the bZ4X concept, a compact SUV that will be sold globally, to be launched in 2025.
- A production version of the bZ3 concept, a midsize sedan that will be sold globally, to be launched in 2026.
Toyota expects to sell 1.5 million EVs per year by 2026, which will account for about 10% of its total sales. By 2030, the company aims to sell 3.5 million EVs per year, which will account for about 25% of its total sales. Toyota also plans to achieve carbon neutrality across the entire life cycle of its vehicles by 2050, and to reduce its CO2 emissions by 33% by 2030 and by over 50% by 2035, compared to 2019 levels.
To achieve these goals, Toyota will also develop a next-generation platform for its EVs, which will offer significant improvements over its current platform. The new platform will use solid-state batteries, which are expected to have higher energy density, faster charging, longer lifespan, and lower costs than the conventional lithium-ion batteries. The new platform will also use a modular design, which will allow for greater flexibility and customization of the vehicle’s size, shape, and performance. Toyota claims that its next-generation EVs will have double the range of its current EVs, and will be able to compete with Tesla and other rivals in terms of cost and performance.
Toyota’s new strategy shows that the company is aware of the changing market dynamics and consumer preferences, and is willing to adapt and innovate to meet the demand for EVs. Toyota’s strength lies in its hybrid technology, which gives it an edge in terms of efficiency and reliability, and its global presence, which gives it access to various markets and customer segments. Toyota’s challenge will be to leverage these advantages and combine them with its new EV offerings, which will require significant investment and collaboration. Toyota will also need to communicate its vision and value proposition to the public, and to overcome the perception that it is behind the curve and resistant to change. Toyota’s new strategy is a bold and ambitious move that will shape the future of the company and the industry.