Toyota has revealed plans to scale up its battery EV business. The automaker aims to roll out 10 new BEV models by 2026, achieving 1.5 million vehicle sales annually. In 2025, it will start a 3-row SUV production in the US.
Toyota held a news briefing about its new management policy and direction on April 7. Koji Sato, Toyota president and CEO who took office this month, said the company will keep its multi-pronged approach by developing hybrid, plug-in hybrid, battery and fuel-cell EVs simultaneously. It also has been working on vehicles powered by hydrogen and carbon-neutral fuel.
According to S&P Global Mobility, Toyota sold 21,650 BEVs last year, with a market share of only 0.3%. It has lagged far behind rivals like Tesla or BYD. The new president said the company wants to provide diverse solutions to diverse needs around the world, but BEV will represent one important option.
He added that Toyota targets to reduce 33% of carbon emissions from its vehicles by 2030 compared to 2019 and cut more than 50% by 2035.
Hiroki Nakajima, Toyota's executive vice president, said the carmaker will release 10 new BEV models by 2026, aiming for 1.5 million vehicles in annual sales. It also plans to launch next-generation BEVs in 2026. Nakajima said the structure and the way Toyota makes the cars, which double driving range, will be completely different from nowadays.
Toyota will have to overhaul the existing supply chains to ramp up BEV production. Nakajima said the company will enhance relationships with suppliers who already have the know-how of HEVs and form new partnerships when needed.
He acknowledged there may have been anxiety among suppliers concentrating on parts for internal combustion engines with the shift to EVs. He said Toyota has good communication with these suppliers and will look for ways to move forward with them together.
To support its BEV push, Toyota will establish a specialized unit. Nakajima said the "all-in-one" team will handle every process from development, production to operation of the business segment.
Sato acknowledged at the briefing that there is much room for improvement in Toyota's BEV BZ series. He said while the automaker has gained knowledge while making BEVs, it will have to change many things that are still in "conventional style."
As for regional market strategies, Yoichi Miyazaki, also Toyota's executive vice president, said the company will begin production of a 3-row SUV in the US in 2025. The vehicle will be equipped with batteries produced in North Carolina.
Miyazaki said Toyota intends to roll out two locally developed BEVs in China next year, complementing two existing EVs announced in last month. For Asia and other emerging markets, he said the company will start local production of battery pickup trucks and launch a small BEV model.
Toyota is facing fierce BEV competition in the US. According to Nikkei Asia, Tesla aims to grow its annual capacity to approximately five million vehicles, while General Motors targets one million cars per year in North America by 2025. Ford has set a goal to reach two million EVs by the end of 2026.
