To strengthen its competitiveness in a growing market that it has been reluctant to enter, Toyota may rebuild its electric car strategy.
Several existing electric vehicle projects have been scrapped, according to four people familiar with the ongoing plans.
If enacted, the proposals would have a massive impact on Toyota. It would also reassess the $38 billion electric vehicle rollout plan the Japanese automaker announced last year to boost competition with Tesla.
Meanwhile, the four sources stated that Toyota asked the work team to outline plans for the next year. It comes available as an upgrade to existing EV range or new designs.
However, the automaker currently halted work on some of the 30 electric vehicles unveiled in December. These include the Toyota Compact Cruiser Crossover and the Crown, a battery-electric vehicle.
Toyota said it is committed to neutralizing carbon emissions. However, it didn’t issue a statement on concrete action plans.
“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,” the carmaker said in reply to queries from Reuters.
Toyota has yet to announce plans. As such, four sources declined to identify themselves.
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EV Reboot
As it happens, the reopening under consideration could undermine the release of electric vehicles, which is currently in the conception stage. But it also gives Toyota an opportunity to compete with more capable manufacturing processes.
This is in consideration of the industry-wide EV sales exceeding Toyota’s previous forecasts.
Additionally, it would deal with green investors’ and environmental groups’ criticisms: Those who say Toyota – a dear environmentalist before – has been too weak to adopt EVs.
Under the review, the automaker is planning for a successor to its EV-based technology named e-TNGA, uncovered in 2019. It would enable the carmaker to decrease costs, the people stated.
The carmaker released the first EV under e-TNGA, the bZ4X crossover, earlier this year. However, a withdrawal that coerced Toyota to cancel production in June spoiled its release. Production started again this month.
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Toyota Projections
Sources said the review came after a few Toyota engineers and execs realized that the factory cost war with Tesla undermined Toyota on EVs.
The carmaker’s planning had projected; EV demands wouldn’t steeply grow for many decades.
Ultimately, Toyota made e-TNGA to produced EVs on a similar assembly line with gasoline vehicles and hybrids. So it was logical to the projection that Toyota must sell around 3.5 million EVs annually by 2030. It covers one-third of its global volume at the moment.
However, EV sales are raging. Global carmakers currently assume plans for EVs to cover over half the total car production by 2030. It is part of an industry-wide investment that now equals $1.2 trillion.
Former Chief Competitive Officer Shigeki Terashi currently leads Toyota’s EV review.
Photo: Automobile Mag
