Toyota to sell 1.5m EVs by 2026

Japanese automaker will release 10 new EV models by 2026 

by NICHOLAS TAKAHASHI & SUPRIYA SINGH 

TOYOTA Motor Corp’s new CEO Koji Sato unveiled the beginnings of a long-awaited plan to electrify the automaker’s vehicle line-up during his first press conference, but stopped short of outlining concrete steps about how exactly the company will match its electric-vehicle (EV) rivals abroad. 

The Japanese automaker, often describing itself as a mobility company whose wish is to change the future of cars, last Friday said it will release 10 new EV models by 2026 and sell 1.5 million battery electric vehicles (BEVs) annually, while “strengthening hybrids and plug-in hybrids” in order to honour its pledge to halve emissions by 2035 and become carbon neutral by 2050. 

“We must first do what we can and start by electrifying,” Sato said in his first public appearance since becoming CEO and president on April 1. 

But the 53-year-old didn’t fully embrace a 100% electric future as many other automakers have done, with several slides during last Friday’s presentation reinforcing Toyota’s strategy of taking a multi-pathway approach to carbon neutrality. 

In developed markets, Toyota’s plan is to enhance the performance of its bZ series of EVs and in North America, have a locally produced battery SUV by 2025 as well as increase battery plant production. In China, it plans to add two locally developed electric models by 2024. In Asia more broadly, Toyota will also focus on battery pick-up trucks and compact electric cars. 

Building a dedicated EV production platform from scratch while navigating lingering pandemic measures, supply chain snags and semiconductor shortages is top priority for Toyota as Sato looks to shepherd the Japanese carmaker, which expects to produce as many as 10.6 million cars this year, into a new age of electrification and intelligent vehicles. 

“I thought they would talk about Toyota’s values, manufacturing and kaizen in a general way, but it was nice to know the company’s stance on electrification, intelligence and diversification,” Bloomberg Intelligence analyst Tatsuo Yoshida said, referring to the Japanese philosophy of continuous improvement. “They surprisingly talked about things that they might have been planning and think- ing, but never really revealed.” 

As the world’s biggest car manufacturer with some 370,000 staff globally, and Japan’s largest employer, decarbonising Toyota is paramount for the island nation’s mission of slashing emissions, phasing out fossil fuels and mitigating climate change. Toyota was at pains to point out during the 90-minute press conference that while it sees carbon as the enemy, it’s important to not leave anyone behind in the shift to a greener future. 

Asked about President Joe Biden’s historic climate bill that encourages electric car production in the US and the sourcing of EV supply chain components outside of China, EVP Yoichi Miyazaki said Toyota would consider further North American production should demand warrant, without elaborating. 

In December 2021, Toyota pledged to sell 3.5 million EVs annually by 2030, however, BEVs accounted for just 16,000 of the 9.5 million cars it sold in the fiscal year ending March 2022. 

Expectations were high last year when Toyota rolled out its inaugural EV, the bZ4X. That ended in disappointment for customers, however, when thousands of cars were recalled due to concerns that the tires could fall off because the wheels weren’t bolted on tightly enough. — Bloomberg 


  • This article first appeared in The Malaysian Reserve weekly print edition