Japanese legacy automaker Toyota aims to boost its electric vehicle production by threefold in 2025 from its 2024 guidance, the publication Nikkei Asia reveals.
Production target
The news apparently emerged from Toyota’s notification of its planned EV production ramp-up to its major vehicle parts suppliers in the following years.
As part of this newly developed plan, the company will boost the production of Toyota and Lexus EV models to 600,000 units in 2025.
It indicates a major increase from the 2024 production guidance of 190,000 units. For comparison, Toyota’s EV sales were only 24,000 units last year, as noted by Reuters.
Overall, Toyota aims to produce more than 10 million vehicles this year regardless of powertrain. Of that total, EVs are expected to account for roughly 150,000 units.
That target would increase to 11,000 vehicles by 2025, with EVs owning a 5% to 6% share of the total volume.
Strategy
One of Toyota’s parts supplier executives implied that the sales strategy involves OEM electric cars, saying it may sell “around 800,000 units, including OEM sales” in 2025.
To achieve that, the Japanese automaker aims to launch a new Hilux EV in Thailand in 2023. The following year, it will also offer new electric SUVs in the world’s largest auto market (China) and the United States.
Moreover, it also announced plans to launch a new Lexus ES EV model in its home market in 2025.
Apart from these, the company is also collaborating with co-Japanese automaker Suzuki and its subsidiary Daihatsu Motor for mini commercial EV development.
The publication further indicated that Toyota plans to utilize two of its primary factories in Japan for its EV production, including the one in Aichi Prefecture and the Lexus plant in Kyushu.
Meanwhile, it will produce EV batteries in its dedicated factory in the US. It expects this new plant to commence production as early as 2025.
The company will also establish battery production lines at its two factories in Aichi, with its subsidiary Prime Planet Energy & Solutions boosting production.
Apart from in-house production, Toyota also plans to source batteries from Chinese giants CATL and BYD and South Korean LGES.
Toyota will also launch a new electric platform initially going to Lexus EVs in 2026. The brand will utilize innovative gigacasting machines to mold aluminum into EV chassis parts.
Toyota targets to hit 3.5 million EV sales this decade. Of that total, 1.7 million units are expected to feature the new EV platform.
Toyota EV sales – 2022
Toyota sold 448,854 electric vehicles, including battery electric, hybrids, plug-in hybrids, and fuel cell vehicles, in North America in 2022.
According to The Buzz News, that figure accounted for 24.3% of the automaker’s overall sales volume last year.
“In 2022, we further solidified our leadership position in electrified vehicles, and through our 20 electrified options, we’re giving customers a choice that fits their lifestyle and needs.”
TMNA Executive VP, Jack Hollis
Globally, the automaker sold about 2.73 million EVs in 2022, according to Statista. It indicates a notable 4% from about 2.62 million EVs in 2021.
See Also:
- Lexus to usher Toyota’s EV development while still preserving hybrid technology
- Toyota introduces advanced EV production line in Japan
- Toyota reveals hydrogen-powered Hilux prototype with estimated 365 mile-range
- Toyota unveils its cheapest EV yet in the Philippines
- China’s WeLion already ahead of Toyota in the 1,000km solid-state battery race
The planned production ramp-up is part of Toyota’s strategy to catch up in the rapidly growing electric vehicle market and compete with industry leaders Tesla and BYD.
However, it remains committed to traditional gasoline-powered and hybrid vehicle models. It still has no plans to fully transition into an all-electric brand like other automakers.
