Toyota (TM) seems to be set to perform a face.
As the entire industry races towards electric vehicles, the Japanese automaker has demonstrated its unique strategy.
For Toyota, the world’s second largest auto group by market value after Tesla (TSLA) a strategy that combines gasoline vehicles and less polluting vehicles is the recipe.
Instead of going all-electric, the group has long favored hybrid vehicles, which have enjoyed consistent support from environmentalists. The Toyota Prius has been a role model for environmentally conscious consumers.
Toyota has tried to go it alone with one strategy: hydrogen-cars run on fuel. Toyota Mirai is the only fuel cell vehicle on the market.
Electric car vs Electric car
In early October, CEO Akio Toyoda confirmed that the vehicle maker would unveil a line of traditional rechargeable and liquid hydrogen-powered electric vehicles. lithium-ion battery pack.
Toyota hopes to invest $70 billion in electric vehicles, with half of that in 100% electric vehicles. Unlike other manufacturers, the group’s carbon-reduction strategy does not focus on battery electric vehicles,
Toyota plans to produce just 3.5 million electric vehicles by 2030, or just a third of its total. Tesla, the market leader, plans to produce 20 million electric vehicles a year by 2030.
By comparison, GM (GM) and Ford (F) The two legacy automakers promise that electric vehicles will make up the majority of their sales in the coming years.
In 2019, Toyota announced e-TNGA, a platform that can be configured for different battery and electric motor combinations. But the bZ4X, the first 100% electric vehicle developed on the platform, was subject to a recall shortly after marketing began.
The platform is another sign that Toyota favors hybrid vehicles, even when Green Peace Toyota considers Toyota to be the slowest legacy automaker in the transition to zero-emissions vehicles.
However, Toyota now seems to have heard the criticism and is about to change its strategy to give EVs a big chunk of the decarbonization of its production line.
Restarting the Electric Vehicle Strategy at Toyota
Based on Reutersthe company is considering restarting its EV strategy to better compete.
It has paused some work on existing EV projects, such as the battery-powered Toyota Compact Cruiser and Crown crossovers.
“A working group within Toyota has been tasked with drawing up plans early next year to either improve the existing EV platform or for a new architecture,” Reuters quoted sources close to the matter as saying. this.
A conclusion is expected in early 2023.
The decision is said to be motivated by Toyota’s recognition that consumers are using electric vehicles at a faster rate than they realize.
Follow S&P Global Platts Analytics.
“We have seen governments around the world introduce legislation to fund the expansion of EV charging infrastructure, increasing production capacity,” said David Capati, low-carbon transport analyst at Platts Analytics. EVs in the country and many countries set ICE sales targets or bans as early as 2025.” .
He added: “Automakers worldwide have also invested more than half a trillion dollars to increase every aspect of their EV capacity over the next decade.
Toyota may also realize that Tesla, for example, has been saving more in its factories.
“To achieve carbon neutrality, it is essential not only to develop our own technology, but also to work with various partners and suppliers, including those in the industry,” said Toyota. automotive industry”.
“We’re always actively discussing and working with key stakeholders on a variety of topics, but we don’t have any insights to share at this time about development projects other than those. which we have disclosed.”
