Toyota isn’t saying “No” to EVs, but they are not even saying a “Yes” either. Currently, Toyota is following a “multi-pathway” approach. While Toyota isn’t abandoning EVs entirely, they are taking a more cautious approach compared to some automakers who are going all-in on EVs. Is that a wise decision taken by Toyota, or is it planning something big? All the car manufacturers are competing in a rat race for the pioneer EV industry. Along with them is the government making all efforts towards a cleaner, greener future. However, Toyota has taken a different stance and is no longer a head-on competitor to companies manufacturing EVs.
Toyota’s Stance on EVs
Many companies have set targets for producing a number of EVs in the next few years. Toyota was also set to spend 4 trillion yen ($28 billion) to roll out 30 EVs by 2030. Still, that is even less than the $50 billion that Ford Motor Co. is spending to build EVs through 2026.
Toyota’s former chairman says that no doubt this amount to be spent on EV production allocated by them is very low, but their focus is on battery-powered hybrid innovation, and the advancements they have accomplished in this field in the last 20 years are commendable in themselves. Even the total amount they have invested in the same is much bigger than the amount announced by the other EV motor manufacturers.
According to Akio Toyoda, Toyota will introduce more electric vehicles in the coming years. It will also offer gasoline-electric hybrids, hydrogen, and traditional fossil fuel-powered models. Battery-powered hybrid vehicles will be popular among users demanding fuel-efficient, eco-friendly vehicles that reduce carbon emissions to near zero and hold long-term potential for sustainable transportation. Toyoda believes that the EV market in the automobile industry holds only 30% market share, but the battery-led electric market holds the other 70% market share. According to him, the enemy is carbon emission, and they want to fight the enemy, which inspired Toyota to head to battery-driven electric vehicles.
Changing Dynamics
The company has made large investments in green hydrogen and hybrid drivetrains under his direction. Although a few other powerful figures shared this perspective in the industry, it lost momentum as competitors such as Tesla continued to set new records for EV sales. The pressure for a new direction increased as more and more EV competitors entered the market, and Toyota hesitated to launch its own fully electric model. Eventually, Koji Sato replaced Toyoda in early 2023. While refusing to downplay the importance of hydrogen fuel cell vehicles (FCVs)and hybrid vehicles, Sato has significantly advanced the automaker’s electrification strategy since assuming the role of CEO. It is not surprising that Toyoda still holds unfavorable views regarding the direction that EVs will take.
EV Market Share by Country
| Country | EV Market Share |
| Norway | 80% |
| Iceland | 41% |
| Sweden | 32% |
| China | 24% (predicted to surpass by the end of 2024) |
Toyota vs. Toyoda
Determining whether Toyoda’s remarks reflect his personal opinions about electrification or if other Toyota executives share them is a challenging task. The latter seems more likely, considering that the company states that it is ready to adhere to laws that will forbid the sale of gasoline-powered cars by 2035. It hopes to deliver 1.5 million electric vehicles by 2026, or 14% of its projected sales volume.
Toyoda is not against the acceleration of zero-emission vehicles despite these strong opinions. He and Sato have both discussed Toyota’s emphasis on creating e-fuels, or fuels made using electricity generated from renewable energy sources like CO2 and water. In addition, Toyoda said at the press conference that “Japan is the only developed country to reduce CO2 emissions by 23%,” a success rate that can be attributed in large part to the country’s increasing use of hybrid automobiles.
In addition, Akio Toyoda has been under fire from investors and environmentalists around the globe, which has caused its brand to rank last among international automakers’ decarbonization initiatives. They have also been criticized for sticking to their 25-year history of producing the gasoline-electric Prius hybrid, which at one point won Toyota awards.
The fact behind all this criticism lies in the fact that hybrid today has not remained a green technology. This fact has been clearly stated by Katherine Garcia, the director of the Sierra Club’s Clean Transportation For All campaign, mentioned in her article. Any gas-powered vehicle has a combustion engine that emits pollution, which powers the Prius hybrid.
Conclusion
As Toyota stands at a crossroads between tradition and innovation, the debate over its stance on electric vehicles continues to unfold. While some view Toyota’s decision to prioritize battery-powered hybrids as a commendable step towards reducing carbon emissions and promoting sustainable transportation, others question the company’s reluctance to fully embrace the rapidly evolving electric vehicle market. With a new CEO at the helm, Toyota is reevaluating its electrification strategy, aiming to strike a balance between its commitment to hydrogen and hybrid technologies and the growing demand for zero-emission vehicles. As the automotive landscape undergoes a paradigm shift towards electrification, the world watches closely to see how Toyota will navigate this transformative journey and redefine its position in the future of mobility.
FAQ’s
1. Is Toyota really stopping all production of electric cars?
No, Toyota is still investing in electric vehicles, but they are not prioritizing them entirely. They are focusing on other alternative fuel technologies as well.
2. What alternative fuel technologies is Toyota interested in?
Toyota is a big proponent of hybrid electric vehicles (HEVs) and hydrogen fuel cell electric vehicles (FCEVs).
3. Will Toyota ever produce a mass-market electric car?
There are chances that they may. Toyota is keeping an eye on the development of EV technology, which may increase production in the future.
4. What are the benefits of HEVs and FCEVs compared to EVs?
HEVs offer a good balance of electric and gasoline power, while FCEVs have a longer range and faster refueling times than EVs.