Japanese legacy automaker Toyota is “catching up” on the electric vehicle industry and new technologies after a very slow start, according to its North American leader.
Toyota pledges commitment to EVs: New battery and manufacturing technologies
Toyota has long been one of the top laggards in battery-electric vehicle adoption. It struggled with a very shaky start with the launch of its inaugural BEV offering, the bZ4X, in the US market. It even had to recall the electric SUV in 2022 due to the possibility of wheels falling off.
Such challenges made it difficult for the Japanese automaker to gain traction in the rapidly evolving electric vehicle market.
Now, Toyota Motor North America (TMNA) Chief Executive Ted Ogawa claims that the company is starting to catch up with its stronger commitment and battery tech development initiatives.
Manufacturing innovations
The company executive revealed that Toyota headquarters is currently developing a “very exclusive factory” for electric vehicles. It will reportedly have innovative technologies new to the Japanese automaker.
In 2023, Toyota unveiled its next-gen production line with Tesla-pioneered Gigacast technology. For context, it is a process of high-pressure die-casting that injects molten aluminum into casting molds to make vehicle production easier, faster, and cheaper.
It also expects other innovations like self-propelled assembly lines and robots to improve its production efficiency while minimizing defects.
Battery tech development
Toyota also presented new battery plans in the summer of last year, including two next-gen batteries due in 2027.
The first “Performance” battery will arrive with a more than 800 km (497 miles) range and a 20% cost reduction from the bZ4X. Meanwhile, the “Popularisation” version will have a more than 600 km (372 miles) range at 40% lower costs.
Between 2027 and 2030, it aims to roll out a lineup of “further evolution” batteries. It includes the highly awaited solid-state batteries with more than 1,000 km (621 mi) driving range and 10-min fast charging capability.
Ogawa acknowledges Tesla lead, pursues “Multipath” approach
TMNA CEO Ted Ogawa acknowledged that Toyota is behind American electric vehicle giant Tesla.
Toyota’s vehicle sales exceed 2.2 million units in the US market in 2023. Of that total, only 9,329 units were battery-electric models. It represents just less than 0.5% of the total volume.
The downward trend has pushed through in 2024. It only sold a total of 1,897 bZ4X units in the first quarter of the year. This figure accounts for less than 0.4% of the 486,000+ vehicle sales in the same period.
CEO Ogawa said that the company is monitoring electric vehicle demand instead of regulations.
“However, the BEV was our missing piece two years ago, so that’s why we were very much criticized.”
TMNA CEO Ted Ogawa (via Automotive News)
All that said, CEO Ogawa believes that “this is kind of the starting year of the real multipath way, like the hybrid, which we already have, and then plug-in, something between hybrid and BEV, and then BEV, which it is time to introduce to the market.”
The Toyota boss also noted that the company is not the only one catching up in the EV space but also the “ecosystem surrounding the BEV area, such as the home charging or energy management.”
Toyota has also announced several new investments in the US to boost local production, including the $1.4 billion in Indiana. The investment will primarily fund its plans to launch a new electric SUV model, which is different from the three-row electric vehicle model it aims to develop.
