As GM continues its transition to an all-electric portfolio, several other major automakers are also making strides in the EV segment, including Toyota, which, according to one recent report, is now considering a more aggressive EV strategy in light of greater-than-anticipated EV demand and falling manufacturing costs.
Photo: Noriaki Mitsuhashit / N-RAK Photo Agency
Back in December of 2021, Toyota unveiled its $38 billion corporate EV strategy, which included the announcement of 30 battery electric vehicles (BEVs) by 2030, and a goal of reaching 3.5 million total global BEV sales within the same timeframe.
Now, however, per a new report from Reuters, Toyota is reconsidering its EV strategy. According to the report, which cites anonymous internal sources, Toyota is now reviewing its strategy in response to faster-than-anticipated growth in global EV sales, with forecasts that EVs will account more than half of total vehicle production by 2030 following widespread industry investment. The review was also prompted in part by Toyota’s realization that it was losing the factory cost war for EVs to Tesla, per Reuters.
As a result of these new developments, Toyota has reportedly appointed an internal working group to outline improvements to the automaker’s EV strategy by early next year, including possible improvements to Toyota’s current EV platform, or even an all-new architecture. Additionally, Toyota has suspended work on some of the 30 EV projects originally announced late last year, including the Toyota Compact Cruise crossover and all-electric Toyota Crown.
Toyota Motor Corp. President Akio Toyoda
Although the shift in strategy may slow the rollout of new Toyota EVs in the short term, it may also provide Toyota with an opportunity to develop more-efficient manufacturing processes to help it compete in the EV segment. What’s more, it may give Toyota a chance to answer some critics who say the Japanese automaker has been too slow to embrace the all-electric segment.
To that end, Toyota may develop a successor to its all-electric e-TNGA architecture. The first EV based on e-TNGA was the bZ4X crossover, which launched earlier this year. A subsequent recall delayed production over the summer, only to resume earlier in October.
2025 GMC Sierra EV
Meanwhile, GM has plans to launch 30 new EV models by 2025, with $35 billion slated for investment in the EV and autonomous vehicle segments. GM aims to have an annual EV production capacity of more than 1 million units in North America by mid-decade.
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Comments
It takes years to lay down the infrastructure, build the factories and secure the supply chains, and so there is pressure to start now to avoid getting left behind, but I disagree when people say companies are “late” to the EV market. The market is still in its infancy and is set to see radically new technology (such as solid state batteries), requiring new machines, processes and raw materials to produce. For this reason I believe the later entries into the market will be among the tougher competitors because they will come onto the scene with the best technology and won’t need to spend billions to retool as the original entries will.
I agree with most of what you’re saying, but mindshare matters. Imagine how much more experience Tesla has building EV’s. Same holds for GM that’s not to far behind with battery factors and plants. Also most solid state cells can be made on the same lines as pouch cells.
Toyota is behind and have put a lot of their eggs in hybrids and hydrogen. The question is do they have the will to put the necessary resources behind EV’s.
They’re not reconsidering it…… the heavy hand of ESG’s is coming down hard on them because they laughed at GM and ford who have invested heavily and can’t move 1000 BEV units a month…. (Yes a little hyperbole, both GM and ford are averaging 2000 units per month… all BEVs) so they are playing the tesla game, promise unicorns and ride it out. All ESG government spending will stop next year, and many ESG banks will be sued/held in contempt of congress next year, so they just got to pretend to be “all in” for 2 more months
The Red psunami’s coming…
It’s a sad day when GM takes orders from the government instead of its customers. Too bad they have no spine anymore.
I agree as ESG is a prime driver of global industry today. They can crown kings and destroy those opposed. This is much much bigger than bumbling Biden.
Toyota was trying to force their decision of Hybrids as it was the cheap easy way out. But the global powers want electric.
I said a while back Toyota is behind but once they change their path they unlike Ford have the money to make the change and catch up.
The wild card is going to be the start ups. Who will survive and who will not. Some cash deep companies will give it a try to enter the car market and a few may be a big challenge.
Like what Mary has done or not it will be seen as a critical move made at she right time.
Many just have no clue how big of an impact the WFC and ESG is pressuring business today. Read up on both because they will not stop at companies. I expect they will pry into our lives soon.
The leader of the WFC was bragging how very soon you will be able to measure your carbon footprint. If you can do that you know they will be too. It will be their way to control people.
This will pass once the current economy crushing administration is voted out soon.
Sorry Carl but with billions spent and global forces in play elections will change nothing anymore.
Once they set the path that is the direction they are taking.
We shall see, they still can’t make me want one.
It is much bigger than you or me.
what if ? what if the electric car is successful enuf to break the arab countries that are financing the terrorist. I’m a big block guy but i’m willing to give’er(V8) up for peace
Companies building factories will not change their plans based on who’s in office.
Dont worry about Toyota. They have immense resources to pivot to BEVs in short order.
Please vote GOP so we can stop the destruction of our economy! Government sponsored ESG and EV mandates will stop next year, don’t worry, most Americans don’t support this.
As long as it’s not Trump. He never was a real Republican.
He accomplished tons and didn’t hurt my feelings. It’s a tough job and it takes a tough guy to do it right!
Even if Trump resends all the regulations on the federal level over 1/3 of the market is in states that will continue to use CARB regulations.
That is not counting the global regs already in place.
Companies are looking at 25 plus years not 4-8 years of regulations.
Read up on the WFC and learn what damage they are doing and the names that are involved.
There will be many casualties just as there were in the automobile business when it began. Cash will be king. Can Tesla continue success with no advertising?
Teslas big issue is the delays of new product.
They are years late and over promised. The big brands will introduce more car in one year than Tesla in 10 years.
I mean who is shocked by this News?
As it stands right now the entire Auto Industry is scheduled to Spend 1.2 Trillion Dollars by 2030 on the monumental shift to BEV’s around the World. Let me repeat that number for clarity……1.2 Trillion Dollars
As we all know 1.2 Trillion Dollars in 7 years time is an staggering amount of money. And it will most likely grow as Honda, Toyota and Stelantis start going more in as they will have to.
I have stated multiple times that Hondas and more importantly Toyotas lack of urgency will be the reason that Ford and more specifically GM will finally overtake Toyota. GM went all in early and it will bear fruit while Toyota will be scrambling from behind because they wanted to save their Legacy Hybrid Business. Everyone at Toyota should be fired but I would be lying if I wasn’t excited that GM if done correctly will overtake Toyota. Lets go GM!!!
Honda will do fine as they have a partner in GM to help them save cost and remain a single company.
Toyota may be behind but they have the staff and money to catch up fast.
Ford is in major trouble as they are behind. The Lighting and Mach E were just distractions for the lack of a comprehensive program they started about the time the Lighting came out. It will take about 4 years for them to complete their platform and then still have to apply it to the models they plan to use it on.
Ford does not have the money to pay for all this so they have already laid off 8,000 employees to pay for it. They will need more money soon and the lack of parts and the high cost of aluminum have robbed them of the easy profits to pay for this. They also have loans out standing yet too.
This was a deal where GM and Toyota tried to take the lead and see who followed whom and GM did not blink.
Each company will have some Hybrids but they will not be a priority and for markets where the EV may struggle in charging and lack of power. It will be a small market.
Most automakers are investing initially $30 Billion dollars Each. More will be needed. Also many suppliers are spending even more billions to develop new tech and batteries.
I agree they are not going to dump this.
The new automakers coming to market like Apple, Sony, Fox Conn and others have very deep pockets and could actually come up with some challenging models for even the established brands.
Some smaller mfgs could struggle, Merge, Sell out or even close.
It is time to face reality and stop all the BS about elections and other things that would make this development stop. It is not going to happen over night and it is not going to stop. The public as a whole are becoming more open minded about it where no one wanted it at first.
I am more worried about my collector cars and they being taken away. Same for racing with ICE.
@C8.R
Agreed. These new Startups have crazy stashes of cash and will be a problem. Not so much for GM because they started to convert early. But I still think Toyota is in Trouble. They completely messed up and they are starting to realize it.
I said years ago that Tesla will become a powerhouse and some laughed at me. Disruptive Tech hardly ever stops….as I have stated many times and sound like a broken record (I know HaHa) disruptive Tech hits an S Curve and then it is the Norm.
I would agree with you if Tesla would have expanded their lineup in the last couple of years. Its given others time to catch up. GM has a whole line of vehicles coming. Hyundai /Kia keeps releasing vehicles.
@theflew
Tesla currently has Four vehicle Models that they cannot Produce fast enough. They only have Two Fully operating Factories in Fremont, CA and Shanghai. They are in the process of ramping up Austin, TX and Berlin but those will take a year or two to be fully operational.
Then the Cybertruck will be coming in 2023. And they just announced they are working on their so called 25K vesicle which they believe will sell in very high volume.
How many vehicles will Tesla be selling by 2030…..that is what should be scaring the you know what out of most Legacy Automakers. Maybe they shouldn’t have taken them so lightly to begin with!!!
Yet for some reason they are lowering the price and starting the referral bonus again on the M3 in China where they have a lot of cheaper competition and options.
Rebates, low interest financing and price drops are all indicators of the economy as a whole. 6 months ago every GM car was getting MSRPp++ now we are seeing 1000$ cash back, zero %,and other incentives, maybe the 3% raise in interest is having an impact. China’s economy’s still a train wreck, they have lost upwards of 10-15million people many of whom were either high skilled/trained workers, high experience engineers and their front line medical staffs. Couple with the ongoing lockdowns it will be a decade to recover.
Toyota has saved billions maybe 50+ by waiting for all the research to mature. If they could wait two more years the 4th generation of battery tech will be a game changer. I am sure they have been quietly acquiring much data from evry mfgr’s “fire” issues.
Not really as everyone is doing their own thing and what we have today will be gone in 5-10 years.
GM is already working on new silicone cells to replace the present cells.
They might have saved, but it’s going to cost them more than what it cost GM to build their battery plant they started 2+ years ago.
GM should be ashamed for partnering with the government in this Soviet style scheme.
Carl it not a partnership vs strong armed globalist pushing their agenda or we will destroy you.
It is more like what Al Sharpton has been doing.
Please read up on the WEC and how they are using ESG scores to blackmail companies to their agenda.
Just read who was at the Davos conference and just what they said. They want to control every aspect of your life. It is billionaires and world leaders. Biden was one.
I know, just keep saying no!