Toyota plans to outline adjustments to its electric vehicle strategy with major suppliers early next year as it races to close the price and performance gap with industry leaders Tesla and BYD, according to the work. said two people familiar with the matter.
The automaker plans to detail changes to its EV plans and notify major suppliers of the adjustments by early 2026, said the people, who asked not to be identified.
Toyota has been looking at ways to improve the competitiveness of its EVs planned for this decade. This includes accelerating the adoption of planned EV performance-enhancing technologies, from the electric drive system that includes the motor to the electronics that convert the power from the motor. Energy stored in batteries and converted to the grid into a more integrated heating and cooling system, officials said.
However, the change could include delaying some of the EV development program originally scheduled for three years, one of the people said.
The changes are for successors to Toyota’s first two EVs for major markets, the bZ4X and Lexus RZ, and are intended to close the cost and performance gap with Tesla, the people said.
Toyota plans to convene a large gathering of suppliers in February. This is the first global supplier competition since the pandemic.
In a statement, Toyota said it “constantly actively discusses and collaborates with key (suppliers and partners) on various topics” to achieve carbon neutrality. But he said there were no new details to disclose about the EV development project.
Elon Musk’s Tesla made about eight times more profit per car than Toyota in the third quarter. One of his reasons is that it can simplify EV production and reduce costs.
Toyota is considering a three-phase, $30 billion plan to develop and launch an electric vehicle announced late last year, Reuters reported in October.
While it has suspended work on some battery-powered vehicle projects announced last year, a working group led by former Chief Competitiveness Officer Shigeki Terashi said it would be cost-effective in the fast-growing EV market. And we aim to improve technology.
The task force is tasked with outlining plans to improve Toyota’s EV approach, including considering possible successors to its new EV platform, e-TNGA.
The reforms come despite Toyota’s view that the gas-electric hybrids it pioneered with the Prius will continue to be an important part of the transition to carbon-neutral transportation.
Most major automakers expect EVs to make up the majority of vehicle sales by 2030, and green investors and environmental groups expect industry-wide EV sales to exceed Toyota’s previous expectations. Therefore, we are requesting prompt action from Toyota.