Toyota's chairman shares a stark prediction for the future of EVs

The Japanese automaker has been slow in bringing EVs to market.

Jan 25, 2024 - 00:30

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Toyota's chairman shares a stark prediction for the future of EVs

Toyota Motor Company (TM) - Get Free Report chairman Akio Toyoda has never been very fond of EVs, and his latest comments double down on his sentiment.

Akio Toyoda, chairman of Toyota Motor Corp., speaks during a news conference at the Tokyo Auto Salon in Chiba, Japan, on Jan. 12, 2024.
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At a recent Toyota company event, Toyoda gave some rationality to his disbeliefs towards battery electric vehicles (BEVs), noting that much has to be done in order to have an functioning ecosystem that supports its seamless use.

"BEVs and FCEVs [fuel cell vehicles] come as a set with infrastructure," Toyoda said in a statement translated from Japanese. "However, one billion people around the world live in areas without electricity. In the case of Toyota, we also supply vehicles to these regions, so a single BEV option cannot provide transportation for everyone."

The chairman claimed that since the introduction of hybrid cars in its domestic market, Japan has reduced its CO2 emissions by 23%. Emphasizing the belief of "freedom of movement," he had a very stark prediction about the future of electric vehicles.

A Toyota Motor Corp. FT-Se electric vehicle on display during the Japan Mobility Show.
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"No matter how much progress BEVs make, I think they will still only have a 30 % market share," said Toyoda. "Then, the remaining 70% will be HEVs, FCEVs, and hydrogen engines. And I think engine cars will definitely remain."

"I think this is something that customers and the market will decide, not regulatory values or political power."

Toyoda's comments follow similar statements he made at the Japan Mobility Show in October 2023, where slowing sales of EVs led him to say that "people are finally seeing reality."

“There are many ways to climb the mountain that is achieving carbon neutrality,” he said at the show.

More Business of EVs:

Though Toyota has been slow in adopting EVs, the brand is still seen as an eco-conscious brand amongst consumers and the general public. A recent survey from Heatmap found that the automaker was the second-highest behind Tesla (TSLA) - Get Free Report on perceived sustainability of any automaker, despite the company's efforts to obstruct regulations both stateside, as well as in the United Kingdom.

Currently, Toyota offers a selection of "electrified" vehicles in its current lineup, including 12 hybrid vehicles, two plug-in hybrids, the bZ4X EV and the Mirai hydrogen-electric vehicle.

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