There are plenty of reasons to worry about Toyota’s long-term future. After all, the Japanese carmaker is arguably the most influential automaker in the world. Whether it’s selling vehicles or making its influence felt through its e-commerce websites, Toyota has a lot of power.
The company has been hesitant to invest in all-electric vehicles. In fact, its only pure electric model is the Prius hybrid. Nonetheless, Toyota is planning to introduce at least 15 new battery-electric vehicles (BEVs) by 2030. This would correspond to more than a third of the vehicles Toyota currently sells. However, the firm’s slow transition into EVs will limit its gains in the industry.
Toyota’s sluggish development of electric cars has been a big concern for many automakers. Despite its lack of enthusiasm, the company has managed to maintain its market share. It was the top-selling automaker in the U.S. and in 200 other countries in 2021. And, while it’s not likely to reach its 100% electric vehicle requirement in China anytime soon, it does plan to produce a range of electrified vehicles.
In June, Toyota unveiled a concept vehicle for an all-electric SUV. At the time, the company said it would be investing $2.1 billion in U.S. EV battery manufacturing capacity, an increase from its original $1.3 billion investment. When finished, the facility will have the capability to make 800,000 EV batteries annually.
While the majority of the automotive industry is fully behind electric vehicles, Toyota has been lagging far behind its rivals. For instance, the company’s stated goal to sell 3.5 million fully electric vehicles by 2030 won’t be reached by the end of the decade, but it could still grow in the next decade.
Toyota has argued that mass adoption of all-electric vehicles will harm the environment. But it also claims that EVs are not the only solution. Instead, Toyota has focused on developing “electrified” vehicles, which include hybrids, and are more economical than pure electric models. Besides being cleaner, hybrid cars are less expensive.
In Europe, Toyota is facing some tough competition from other automakers. While the majority of the industry has embraced EVs, Toyota is far behind in terms of sales and plans. As a result, the company will need to rely more on fossil fuels in the near future.
Meanwhile, Ford has announced plans to build battery factories across the country. Its largest plant is in Tennessee. Ford has also pledged to offer zero-emissions electric vehicles by the year 2035. Another automaker, Mercedes, spent half a billion euros upgrading its plant in Germany to produce electric SUVs. Other automakers have made similar promises.
Nevertheless, Toyota’s continued commitment to its traditional hybrids, like the Prius, and its EV strategy has caused a lot of doubt among its once-supportive supporters. Some even question whether the company’s position as the world’s top automaker is under threat.
But Toyota’s strategy for overcoming this challenge will probably not serve the automaker well in the long run. That’s because EVs are expensive, and the company hasn’t developed an affordable electric vehicle lineup. Even worse, Toyota’s supply chain for EVs isn’t progressing as fast as other automakers. So, if you’re looking for an electric car stock, it’s a better bet to buy shares in Ford than Toyota. #yereqgeoenergy #yereqgeo #buildwithyusef #evchargingstations #evcharging #toyota #yereqmlm
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