Toyota is having a hard time shifting to electric vehicles, and it is now considering making changes to its EV plans due to Tesla's manufacturing industry, as reported by Electrek.
(Photo : Justin Sullivan/Getty Images)
SAN RAFAEL, CALIFORNIA - MAY 11: A sign is posted in front of Toyota of Marin on May 11, 2022 in San Rafael, California. Toyota is warning investors that increases in materials and logistics costs due to supply chain issues could lower the carmaker's full-year profit by as much as 20% expects the cost of materials to more than double.
For years, Toyota has been lagging behind the competition in its shift to electric vehicles. Moreover, the automaker is highly critical of electric vehicles despite their plans last year to bring 30 battery EV models to market by 2030.
Reuters reported that Toyota is now considering a reboot of its EV strategy to compete in a booming market and has now halted work on some of its EV projects. It is said that Toyota has a group evaluating major changes to its EV platforms that will change its EV plan. The decision is said to be made early next year. In the meantime, work on EV programs will be halted.
What Toyota Has to Say
Toyota didn't confirm or deny the report, but it said, "In order to achieve carbon neutrality, Toyota's own technology-as well as the work we are doing with a range of partners and suppliers-is essential."
Also Read: Toyota Suffers With Low Earnings, Keeps Customers Waiting Due to Chip Shortage
Triggered By Tesla?
There are reports that the reason behind the review of their EV plan is the fact that Tesla is winning the factory cost wars on EVs. The automaker is said to be surprised by the successful use of some manufacturing technology by Tesla, such as the Giga press, that allows the company to produce bigger casting parts that lead to manufacturing efficiency.
Toyota is determined to compete with Tesla in terms of EV manufacturing, but the automaker is also cautious about Tesla's big plans for the future. Toyota, along with other automakers, is also preparing for the changes in the market. However, the rise of Tesla and its latest performance is a major concern for these automakers.
Toyota is having a hard time grabbing the attention of customers due to its mediocre performance on EVs. The automaker is not disputing the fact that they are currently behind other automakers like Tesla, but they are confident it will eventually recover.
While it is not clear if Toyota is finally considering making some changes, it is clear that the automaker is facing a big problem, and it will need to do something about it. As for their current EV plan, it will be hard for them to compete with Tesla, but if they make some serious changes, the automaker could compete.
With the increasing competition in the EV market, the rise of Tesla, and the government's push for the transition to zero-emission vehicles, we are seeing an increase in the shift to EVs. While some automakers may not be ready to shift, other companies like Tesla and others are using the opportunity to create new jobs and boost the economy.
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Written by April Fowell
