Akio Toyoda, the Toyota Motor CEO, explained their future EV strategy. Being the world's largest automaker, there are huge expectations from the company, especially amid the electrification globally. However, the company received criticisms from some investors and environmental groups regarding its approach to Electric Vehicles (EVs).
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NEW YORK, NEW YORK - AUGUST 04: The front emblem on the grille of a Toyota is displayed in the window at Bay Ridge Toyota car dealership in Brooklyn on August 04, 2022 in New York City.
Its plans, compared to its competitors, are smaller. The plans to invest $70 billion in EVs over the next nine years are not enough to give the automaker its global footprint.
Last week, as reported by CNBC, the CEO boosted his strategy to continue investing in a range of EVs as opposed to its competitors, such as Volkswagen and General Motors.
During Toyota's annual dealer meeting in Las Vegas, Toyoda said, "For me, playing to win also means doing things differently. Doing things that others may question, but that we believe will put us in the winner's circle the longest."
Also Read: Toyota Partners With Suzuki to Produce Hybrid Vehicles
Toyota's Goals for EVs
Toyoda explains that its goals for EVs remain the same-which is to cater to the widest range of customers with a range of powertrains. The powertrains will include hybrids and plug-in hybrids, hydrogen fuel cell vehicles, and all-electric battery models by 2025.
The CEO said that he doesn't believe that all-electric vehicles will be adopted quickly as policy regulators and competitors think. He cited that this is because of various reasons, such as lack of infrastructure, pricing, and the customers' choices that vary depending on where they are in the world.
He reiterated that it will be challenging to fulfill recent regulations that call for banning traditional vehicles with internal combustion engines by 2035. Furthermore, he emphasized that EVs will take longer to become mainstream.
Toyoda also believes there will be significant shortages of lithium and battery-grade nickel in the coming years, which will lead to production and supply chain problems.
The goal of Toyota is to reach carbon neutrality by 2050, but not only through EVs, but through plug-in hybrids as well, following the success of the Toyota Prius.
The automaker also has no plans to overhaul its franchised dealership network as it invests in EVs.This is because it doesn't need to sell a high volume of EVs since it will also sell conventional vehicles alongside them.
The US market is also one of the company's growth areas for hybrids. However, investments will be made only when the market is ready for them.
It's still early days in the EV market as most people are just starting to see the value in purchasing an EV as opposed to a traditional internal combustion engine. It remains to be seen how Toyota's plans unfold. But the company's "win-win" approach seems more realistic compared to its competitors.
Related Article: Toyota Motors to Invest $5.3 Billion for EV Battery Production to Go Carbon-Neutral by 2035
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Written by April Fowell
