Toyota reveals rapid EV rethink

Toyota says it will rapidly increase the number of battery-electric models it offers following the departure of Akio Toyoda as CEO after 14 years, but the Japanese giant has not changed its long-held belief that it should continue to invest in other low-emissions technologies.

According to new Toyota CEO, Koji Sato, the rapid expansion of new EVs from the world’s largest car-maker will initially focus on the premium Lexus brand.

Sato, 53, previously headed up the Lexus and Gazoo Racing brands and is now primed to take over the CEO reins of Toyota on April 1, but his comments of ramping-up the company’s EV business is no surprise.

The Japanese car-maker had come under intense criticism for being too slow to embrace battery-powered cars under the leadership of 66-year-old Toyoda, who will become Toyota’s chairman.

In the past, Toyoda insisted its hybrid technology made more sense to most buyers, especially in markets where EV charging infrastructure was lacking, and that its widespread application of hybrid power had a bigger impact on overall CO2 emissions reduction than a smaller number of EVs.

But Toyota’s relatively slow EV rollout is attributed to providing a gap in the market for other car-makers like Tesla leverage.

In his first formal speech since being anointed as CEO, Sato confirmed that electric Lexus models would be accelerated to market.

But the former Lexus and Gazoo Racing chief stressed there was no change in strategy and that a number of other low-carbon technologies would continue to be developed by Toyota.

“This is not a fast pivot towards battery EVs,” Sato claimed.

“To the point that we have been slow at battery EV projects, I think around half of it is a communication issue,” he said.

Addressing criticisms of back-pedalling on its EV plans, Sato confirmed that Toyota will stick to its goal of selling 3.5 million EVs by 2030.

Toyota is yet to release its first EV, the bZ4X mid-size SUV (pictured), in Australia, where up to five battery-powered bZ models are under consideration and where the local market leader also expects to eventually dominate EV sales.

In December 2021, Toyota committed to spending $98 billion to develop 30 new EVs by the end of this decade, including everything from an electric C-HR small SUV to battery-powered HiLux and LandCruiser models.

Toyota says another statement on the company’s EV strategy will be made after Sato takes over the CEO reins in April.

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