Toyota's Diversified Strategy to Tackle Aggressive Chinese Carmakers
Key Ideas
- Toyota adopts a 'multi-pathway' strategy, including internal combustion engines, hybrids, PHEVs, EVs, and future plans for hydrogen fuel-cell vehicles.
- While lagging in EVs in the Asia-Pacific region, Toyota aims to introduce more EV models and grow its market share, focusing on hybrids as a key segment.
- In 2024, Toyota experienced a 21% increase in hybrid sales, with hybrids accounting for 15% of Apac sales, showcasing the success of its diversified approach.
- Toyota plans to have 15 EV models by 2027 and aims for one million EVs produced annually but anticipates battery EVs to form a maximum of 30% of the global car market.
Japanese automotive giant Toyota is strategically adapting to fierce competition from Chinese carmakers by offering a diverse range of vehicles, including internal combustion engines, hybrids, plug-in hybrid EVs, fully electric cars, and future plans for hydrogen fuel-cell vehicles. While Toyota has been slower to pivot towards EVs compared to European and Chinese brands, it aims to introduce more EV models in the Asia-Pacific region, with a focus on hybrids due to varying market readiness. In 2024, Toyota experienced a significant increase in hybrid sales, with 15% of regional sales being hybrids. The company plans to have 15 EV models by 2027 and targets one million EVs produced annually. Despite its EV push, Toyota Chairman Akio Toyoda expects battery EVs to constitute a maximum of 30% of the global car market. Toyota's diversified strategy has been successful, as evident from the 21% rise in hybrid sales in 2024, reaching a record 4.1 million units for its Toyota and Lexus brands.