Toyota's Ambitious EV Plan: 10 New Models, 1.5 Million Sales by 2026
Toyota Motor Corp's new CEO, Koji Sato, has announced the automaker's plans to electrify its vehicle lineup. During his first press conference, Sato stated that the company would release 10 new EV models by 2026 and sell 1.5 million battery electric vehicles annually. He also pledged to strengthen hybrids and plug-in hybrids to honor the company's commitment to halve emissions by 2035 and become carbon neutral by 2050.
The Japanese automaker, known for describing itself as a mobility company, has taken a multi-pathway approach to carbon neutrality, with Sato not fully embracing a 100% electric future like other automakers. In developed markets, Toyota plans to enhance the performance of its bZ series of EVs, with a locally produced battery SUV in North America by 2025 and increased battery plant production. In China, it plans to add two locally developed electric models by 2024. Toyota will also focus on battery pick-up trucks and compact electric cars in Asia more broadly.
Toyota, the world's biggest car manufacturer with approximately 370,000 employees globally and Japan's largest employer, must decarbonize to help Japan's mission of slashing emissions, phasing out fossil fuels, and mitigating climate change. During the 90-minute press conference, Toyota emphasized the importance of not leaving anyone behind in the shift to a greener future.
Building a dedicated EV production platform from scratch while navigating lingering pandemic measures, supply chain snags, and semiconductor shortages is a top priority for Toyota. Sato's aim is 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.
Toyota's former CEO, Akio Toyoda, who is now the company's chairman, has long defended his stance that the company should continue to offer customers a range of vehicle options, including those powered by hybrid electric or traditional internal combustion engines. The realigned plan, when announced in its entirety, will likely place Toyota in more direct competition with the two biggest players in the global EV arena: Elon Musk's Tesla Inc. and China's BYD Co.
In December 2021, Toyota pledged to sell 3.5 million EVs annually by 2030; however, battery EVs accounted for just 16,000 of the 9.5 million cars it sold in the fiscal year ending March 2022. Executive Vice President Hiroki Nakajima emphasized the importance of not wavering from the company's multi-pathway strategy.
Toyota has high expectations for its EV line, including the bZ4X. However, the company faced disappointment when thousands of cars were recalled due to concerns that the tires could fall off because the wheels weren't bolted on tightly enough.
