Why Is Toyota, The Biggest Automaker In The World, Not Fully Committed To Electric Vehicles? Is It Really Anti-EV, Or Is It Just A Long-Term Strategy?

Why Is Toyota, The Biggest Automaker In The World, Not Fully Committed To Electric Vehicles? Is It Really Anti-EV, Or Is It Just A Long-Term Strategy?


  • Some environmentalist alliances have criticized Toyota, the leader in hybrid automobiles, for its conservative approach to investing in completely electric vehicles.
  • Battery-electric vehicles aren’t the only way to create more environmentally friendly cars and achieve carbon neutrality, according to the business.
  • Toyota plans to build 3.5 million electric cars by 2030, which would account for more than a third of its current sales, while competing automakers commit to only selling these types of vehicles.

With the preface of the Prius hybrid, an “electrified” car that was one of the cleanest and even most notable fuel-efficient automobiles ever made, Toyota Motor has become the favourite automaker of American environmentalists and eco-conscious consumers about 20 years ago.

Demand for the automobile was spurred as petrol costs increased, spurring other automakers to release a plethora of hybrid variants. Automobiles from the Prius line, including a plug-in hybrid electric variant, seek to position among the nation’s most fuel-efficient gas-powered vehicles.

Ironically, Prius and Toyota’s hesitation to finance all-electric vehicles has caused the Japanese carmaker to lose favour with some of its former core fanatics as the auto industry shifts to a battery-powered future.

The truth is that modern hybrid technology is not green. The Prius hybrid uses the same combustion engine that powers all gas-powered vehicles, according to Katherine Garca, campaign director for the Sierra Club’s Clean Transportation for All endeavour.

In a study of 10 manufacturers’ decarbonization efforts, Greenpeace rated Toyota last week at the bottom, noting the corporation’s stockpile chain’s delayed development and sales of EVs, which accounted for less than 1% of its overall sales.


Toyota fell behind, pushing relative assertions until lately, while automakers like General Motors, Volkswagen, and others pledged to finance billions of dollars in recent years to build all-electric vehicles that don’t need gas-powered engines like the Prius.

Additionally, it keeps investing in a variety of “electrified” vehicles, from the recently released but unimpressive bZ4X electric crossover to traditional hybrids like the Prius.

Despite firm goals to be carbon neutral by 2050, the approach has put the world’s largest automaker against many of its competitors and urged concerns about its commitment to a sustainable route forward for the industry.

Not only Toyota has such ambitions. Similar investments in electric hybrid cars are being made by Stellantis, Ford, and other Japanese automakers. But a cautious attitude to EVs is momentous in the hands of the father of mainstream hybrid automobiles.

Jack Hollis, executive vice president of sales at Toyota Motor North America, stated last month throughout an online Automotive Press Association conference that no matter how much people desire to discuss EVs, the industry isn’t adequately ripe and ready enough just to support the overall activity.

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Bet hedging

Toyota disclosed its intent to invest 4 trillion yen, or roughly $28 billion, in a fleet of 30 battery-powered electric vehicles by 2030 in a December press release. While doing so, it keeps funding hybrids like the Prius and other possible replacements for battery-electric cars.

“We would like to exhibit to everybody how those who can have the greatest influence on combating global warming. And we are aware that the solution does not lie in treating everyone equally,” said Gill Pratt, Toyota’s chief scientist and the head of the Toyota Research Institute, at a media affair held in Michigan final month.

The business earlier stated that it would fund up to $5.6 billion in the development of hybrid and all-electric batteries in Japan and the United States to support its earlier stated ambitions. Although it may seem like a lot, other companies like GM and VW dwarf it.

For illustration, GM plans to sell only electric, zero-emission automobiles by 2035, starting with its Cadillac and Buick brands. Many other automakers have made such promises or established goals for at least 50% of their North American car sales to be all-electric.

By 2030, Toyota hopes to sell 3.5 million electric cars annually, which would account for more than a third of its current sales. The upscale Lexus brand, which would by then only sell EVs in Europe, North America, and China, contributed around one million of those sales.


Toyota is “certainly on the conservative” side when it comes to electric vehicles, according to Paul Waatti, manager of industry analysis at AutoPacific, but that isn’t necessarily a negative thing for such a big automaker.

I believe they’re pinning their hopes, he continued.”  Numerous markets are expanding at various speeds on a worldwide rating. The United States adopts EVs more slowly than Europe and China, but there are other markets with no infrastructure at all. For a global automaker, using a variety of powertrains makes sense.

In 2021, Toyota sold more cars than any other carmaker in the world, including those made by affiliates Daihatsu Motors and Hino Motors, with 10.5 million sold in about 200 different countries and regions.

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The second-largest automaker in the world, Volkswagen, sold 8.9 million cars in 153 countries, while GM and its collective ventures sold 6.3 million cars, mostly in North America and Asia.

There is just one solution.

Toyota feels that while there is no single answer to the company’s desire to become carbon neutral, all-electric vehicles are a part of the solution.

Jim Adler, the first general supervisor of Toyota Ventures, the automaker’s section for startup financing, said, “I merely can’t perceive. Market conditions “really will be muddled.”

Based mostly on the energy supply, infrastructure, and raw materials needed for the batteries that power the vehicles, Toyota managers foresee that different regions of the world will embrace electric vehicles at varying rates.

Toyota has made considerable acquisitions in hydrogen fuel cell electric vehicles, including a second generation of the Mirai, in addition to hybrid and plug-in electric vehicles.

Vehicles driven by hydrogen fuel cells perform similarly to battery-powered ones, with the exception that energy is produced from hydrogen and oxygen, with water vapour being the only byproduct. Almost as rapidly as traditional petrol and diesel vehicles, they may be filled with a nozzle.

According to Hollis, BEV, fuel cell and plug-in hybrid vehicles will be used, and they’re all crucial.

The costs, a lack of infrastructure, and consumer ignorance are still issues that fuel cell vehicles must overcome, just like they do with all-electric vehicles.

According to officials, e-fuels are climate-neutral fuels that may be used to replace gasoline in non-electric vehicles, and Toyota declared it is even exploring them.

Prices and materials

Additionally, the costs of middle-ground options are typically lower.

A 2022 Toyota Prius hybrid, for illustration, starts at approximately $25,000 and has an EPA rating of up to 56 mpg combined. That costs roughly $17,000 less than the all-electric bZ4X crossover from the manufacturer.


Electric vehicle batteries are very expensive, and because of inflation and the high demand for raw minerals like lithium, cobalt, and nickel that are used to make the battery cells, their prices are only going up.

According to consultancy firm AlixPartners, the cost of raw materials for electric vehicles more than doubled during the coronavirus outbreak.

As a result, Toyota’s hybrid approach is relatively cost-effective. Toyota asserts further that there just aren’t enough of these minerals available.

Pratt predicted that there would be extreme supply needs for lithium over the next ten years or more. “Additionally, there will be a shortage of battery-grade nickel due to the necessity to pay refineries at a time when demand is increasing so quickly.

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To meet U.S. EV ambitions by 2030, according to The Metals Co., a Canadian start-up, there is a notably impaired stockpile of battery-grade nickel, cobalt, and manganese sulphate.

The publicly traded mining business projects that less than 60% of the EV targets established by automakers during that time would be met even if all predicted nickel sulfate output through 2030 from the US and free trade agreement countries went into creating EVs.

Is Toyota employing a long-term strategy?

What if Toyota began selling electric vehicles (EVs) in 2024 with a long-range, space efficiency, radical aesthetics, improved energy efficiency (through lightweight layout), progressive aerodynamics (critical at freeway speeds when aero drag is the immediate power consumer), and innovative vehicle-to-home engagement?

These vehicles would outmanoeuvre rivals if they also retained low-carbon materials and optimized production efficiency based on a common architecture. Toyota’s marketing spending could ensure that customers value their product.

If this occurs, it won’t arrive as a surprise, even though it might be foolish or inaccurate.

Another issue concerns Toyota. Although Electric Vehicles demand substantially lesser servicing, there is a sizable agent array that does indeed increase income.

And there are countless hybrid vehicles on the road now that run the risk of replacing EVs as the “gas guzzlers” of the future.

Does Toyota wish to be associated with the past? Does it give a damn about the dealers’ ability to make a living? There are displayed emissions from disposing of millions of hybrid vehicles early.

What if Toyota is merely playing along?


It has made a meagre investment in hydrogen vehicles. They are given cover, anyway.

Its prominent stance against a swift switch to EVs supports the clear conclusion that they are a contributing aspect and that they stand fixated on outmoded or marginal technology.

Because of their emphasis on hydrogen, they might help from the unfounded “hydrogen craze” to raise their visibility. So perhaps their rivals will be duped.

But if we dig a little deeper, we find that Toyota is a notable acquisition in the next generation of batteries, which are lighter, smaller, and have immense scope. It will be crucial to have user-friendly vehicle-to-home software and smart charging technology.

Many people outside of Japan are unaware that Toyota is an influential player in the housing industry, where vehicle-to-home communication will become more crucial to delivering reliable electricity.

The potential of influential tremors that can disrupt the electricity pool is what has the Japanese interested in this, while people in other countries are seeing serious disruptions in the electrical pools from climate-driven floods, cyclones, and bushfires.

Edited by Prakriti Arora

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