Toyota Motor Corp recently announced that it expects operating profit to increase by 10% this year, with a significant five-fold increase in pure electric vehicle (EV) sales. The company’s CEO, Koji Sato, has unveiled a more aggressive push towards electrification and the goal of selling 202,000 battery EVs worldwide, including the Lexus brand, up from 38,000 units last year. This reflects a shift from Toyota’s previous go-slow approach to all-electric cars.
The profit target of 3.0 trillion yen ($22.2 billion) for this year is in line with analysts’ forecasts, and was boosted by higher output volumes and a weak yen. Despite facing challenges from nimble local brands in China, Toyota plans to work on both pure battery-powered vehicles and hybrid models.
To compete in the EV sector, Toyota has said it will introduce 10 new battery-powered vehicles, targeting sales of 1.5 million EVs a year by 2026. The company will speed up its push to provide “appropriate” solutions for different regions, with new models ranging from compact commercial to luxury vehicles, primarily focused on the United States and China. A dedicated unit, known as BEV Factory, will focus on next-generation battery EVs with three platforms concentrating on vehicle chassis, electronics, and software.
Toyota’s aggressive push towards electrification signals a significant shift in the company’s strategy, which had previously focused on providing more consumer choice with hybrid models. Despite facing challenges in China, Toyota is well-positioned to take advantage of the global shift towards EVs and meet its ambitious sales targets.
Source: Reuters
