Is Toyota finally picking up EV production pace this time? (2024)

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Is Toyota finally picking up EV production pace this time? ›

Despite a slow start, Toyota plans to accelerate electric vehicle output over the next several years. The Japanese automaker aims to triple EV production of Toyota and Lexus brand models in 2025 as mass production begins.

While serving as CEO, Toyoda refused to give EV development top priority, claiming that battery-powered vehicles were too complicated and unpopular with consumers. Instead, under his leadership the company made significant investments in hybrid and hydrogen drivetrains.

How come Toyota didn't foresee the rising of electric vehicles? Toyota did but did not get into EVs due to the shortage of batteries. Toyota manufacturers vehicles on a large scale and there simply is not enough batteries available for the quantities they need to manufacture EVs.

And that's where the company's mid-term plans are now: It says it wants to produce 3.5 million EVs, around a third of its current sales, by 2030.

Toyota appreciates hybrid vehicles' role in transitioning to more energy-efficient transportation. While losing the EV battle, they make up for it in hybrid sales. More importantly, they may have a better EV battery within a few years.

Enter Toyota's intriguing proposition: the 1:6:90 rule. It's a simple yet profound equation, suggesting that the minerals required to manufacture one electric vehicle could produce six plug-in hybrids or even 90 conventional hybrids.

However, critics argue that Toyota's reluctance to embrace EVs fully could hinder innovation and progress in the EV industry, which many see as crucial for long-term emissions reduction. This controversial strategy represents Toyota's unique perspective on the future of sustainable mobility.

Toyota sold 10.3 million cars in 2023, an increase of 7.7pc compared to a year earlier. The total included a combined 3.5 million hybrids and plug-in hybrids – a year-on-year increase of 32pc – but only 104,000 EVs.

One key disadvantage of electric cars is the battery life. Like all batteries, the capacity decreases over time. Researchers suggest battery capacity decreases by approximately 2.3% every year. Battery longevity is highly dependent on temperature.

Production is expected to be back to normal at all 14 plants in Japan from the start of the second shift on Wednesday, the company said in a statement. “It is our understanding that the malfunction of the system was not caused by a cyberattack. However, we will continue to investigate the cause,” Toyota (TM) said.

Why is Toyota declining? ›

Japan-based Toyota Motor Corp. reported that its domestic sales and output declined for the second straight month in February, after a slew of data-rigging scandals among its group companies Daihatsu Motor Co.

That said, the Japanese automaker isn't ditching electric vehicles, and a new report from CarBuzz suggests that one of its most popular family haulers could be going electric soon. The Highlander is reportedly moving to an all-electric configuration, which will lead to a Lexus variant called the TZ.

Critical Mineral Supply: Concerns exist about the ability to meet the demand for raw materials like lithium and cobalt needed for EV battery production. From the leaks, Toyota believes current supply chains are inadequate, potentially leading to shortages and price hikes.

2023 was a record year for Toyota but electric vehicles had little to do with it. Many people rushed to criticize Toyota for being late to the EV game, anticipating the Japanese automotive giant would end up trailing behind the competition.

Toyota plans to build a three-row electric SUV in the U.S. starting sometime in 2025. The company also plans to introduce 10 EVs globally by 2026, with these next-gen electric models to have double the driving range.

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Part of the problem is the ongoing chip shortage. Automakers like Toyota "specifically called out the continuing chip shortage as a rationale for production losses going forward in 2023," Sam Fiorani, VP of global vehicle forecasting at AutoForecast Solutions, said in a recent note about chip impacts.