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.
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.
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.
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.