Summary
- Toyota has been lagging behind in the electric vehicle market, focusing more on hydrogen fuel cell vehicles
- The company has sold barely more than 27,000 Mirai hydrogen fuel cell vehicles in 10 years
- Toyota is now shifting its focus towards battery electric vehicles and has outlined plans to develop and produce Lexus battery electric vehicles in China
- Toyota is also establishing a battery manufacturing facility in the US to produce batteries for conventional hybrids, plug-in hybrids, and battery electric vehicles
- The company’s recent financial report makes it clear that the future is in electric vehicles and batteries, with a focus on tailored offerings for local markets like China and the US
Article
Toyota has historically been slow to adopt battery-electric vehicles, heavily promoting hydrogen fuel cell vehicles instead. However, recent financial reports indicate a shift towards electric vehicles using batteries. The establishment of a new company in China for developing and producing Lexus battery electric vehicles and batteries, as well as an American battery manufacturing company in North Carolina set to begin production, highlight Toyota’s increasing involvement in producing its own batteries.
While Toyota’s newfound interest in batteries and BEVs may garner some praise, it comes at a time when many other automakers have already made significant strides in the electric vehicle market. Toyota’s focus on producing 100,000 units in China and investing $14 billion in its first overseas in-house battery manufacturing facility in the US shows a commitment to electrification, albeit later than others in the industry.
The decision to establish a company in Shanghai for developing and producing Lexus BEVs in China is a strategic move for Toyota to meet local market demand and regulatory requirements. With China leading in plugin vehicle sales, Toyota must take BEVs more seriously in this key market. Similarly, the investment in the US facility is driven by the country’s growing interest in electrification and the potential impacts of government policies such as the Inflation Reduction Act.
Toyota’s US EV plans include producing batteries for conventional hybrids, plugin hybrids, and full battery electric vehicles, indicating a comprehensive approach to electrification. The company aims to strengthen its multi-pathway strategy tailored to local needs, positioning itself as a leader in the transition to electrified vehicles. Despite the late start, Toyota’s recent financial reports reflect a shift in focus towards EV matters, suggesting a greater emphasis on electric vehicles in the future.
The shift towards battery-electric vehicles is apparent in Toyota’s latest financial reports, indicating a pivot towards electrified vehicles and batteries as a primary focus. The company’s investments in China and the US for BEVs and battery production demonstrate a commitment to addressing market trends and regulatory requirements. Toyota’s ambition to become a trusted and loved company in every region where it operates signals a strategic shift towards a more sustainable and electrified future. Overall, the increased emphasis on EV matters in Toyota’s financials suggests a growing significance of electric vehicles in the company’s future strategy.
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