Toyota announced its electric vehicle strategy last year. However, new reports suggest that the manufacturer is currently reconsidering earlier EV plans, as per Teslarati.
According to Reuters, Toyota is limited and mysterious in details. The company seemed so committed to hybrid engine technology in recent months. Executives even worked actively to defend the company’s position. But now, the automaker’s slow EV introduction may change with a new plan, as stated by company insiders.
Electric Vehicle Plan
The plan is an essential change in strategy as outlined by four Toyota employees. The company would reduce the number of upcoming EV models (currently 30 worldwide) while focusing on high-production volume and low-cost manufacturing.
Although this may seem like a shift from their current $38 billion plan of introducing EV models globally, this may fit the manufacturer’s character more than anyone can believe.
No further details of the plan have been said, and Toyota could not immediately comment to explain its upcoming plans.
Toyota’s Entrance to the US & EV Market
Reuters highlighted why the brand has hesitations in entering the EV market. Company executives believe EV demands would not be mainstream for many years, providing Toyota with time to sell high-efficiency gas vehicles continuously. Secondly, company engineers have realized Tesla’s gains in EV manufacturing, another aspect they thought would take years to develop.
Toyota had its place in the US market during the oil crisis in 1973, similarly to other Japanese manufacturers. Consumers were looking for more affordable and efficient alternatives than the Ford Galaxies and Cadillac El Dorados of the 60s. That is why the Japanese company took pride in its affordability to buyers, the efficiency of its offerings, and its low-cost manufacturing.
Toyota CEO Akio Toyoda has elaborated on his perceptions of electric vehicles. For him, the “hail mary” of EV technology is due to challenges on infrastructure growing pains, manufacturing costs, and others. However, some Toyota employees see the opportunity in the EV market.
While the company is an early leader in hybrid technology with vehicles such as the Prius, the Japanese automaker fell behind, The Verge noted.
But while Toyota has been content to rest on its laurels with the Prius, the rest of the industry has lapped it several times. Companies like Nissan, General Motors, and Volkswagen have been selling pure battery-electric vehicles for years while revealing their plans to phase out gas cars completely. Toyota’s failure to embrace EVs is not a new concept; The New York Times noted as much in this article from 2009.
Andrew Hawkins, The Verge’s transportation editor.Reuters highlighted why the brand has hesitations in entering the EV market. Company executives believe EV demands would not be mainstream for many years, providing Toyota with time to sell high-efficiency gas vehicles continuously. Secondly, company engineers have realized Tesla’s gains in EV manufacturing, another aspect they thought would take years to develop.
It is clear for Toyota to focus on the factors that have made the company great, which clears the path to success. Joining the market with affordable, efficient, and all-electric vehicles offer an opportunity to lead in the automotive industry and achieve what was once accomplished.
