Toyota: Electrified vehicle plan pulled ahead 5 years to 5.5 million units by 2025

Plans to start with ultra-compact EV in Japan and six EV variations globally

2019/07/03

Summary

EVをグローバルに展開
Toyota will develop EVs for global deployment in six variations
(Source: All information in this report is based on Toyota materials)

  In June 2019, Toyota held a press conference announcing its future EV plans with a presentation entitled "Toyota's Challenge: Aiming to Popularize BEVs". Toyota Executive Vice President Shigeki Terashi was on hand to conduct the strategy briefing session as well as to lead the Q&A session, where he explained the EV environment and a wide range of associated issues such as the "EV business models being considered by Toyota", its "main zero emission vehicles", its "system for popularizing EVs", and the "development and supply of batteries".

  Toyota is aiming to transform itself from an auto company into a mobility company that provides the freedom of mobility for all. Also, from the social perspective of our home planet, Toyota wants to contribute to the expansion of the popularization of electrified vehicles on a global scale.

  As for the current rate of popularization of electrified vehicles, in December 2017, Toyota announced that it planned to sell 5.5 million electrified vehicles by 2030 (including 1 million EVs and FCVs). However, the advance of electrification is taking place at a speed faster than planned, so Toyota has pulled its plans ahead by five years, and is now targeting to sell 5.5 million electrified vehicles by 2025. Factors responsible for the strong growth in the demand for electrified vehicles include the realization of ZEV and NEV regulations and the formalization of the European CO2 emission standards for 2025 and 2030 (refer to the Q&A section and the chart entitled “Regulation trends” at the end of this report).

  Part of the EV business model envisioned by Toyota includes establishing a system to assess and determine the residual value of batteries, promote a system to sell pre-owned EVs and to reuse batteries for other purposes, and finally to build a mechanism for battery recycling (including the recovery of scarce natural resources).

  EVs to build Toyota’s new business model, will start in Japan with the introduction of an ultra-compact EV and a “walking area EV” (i.e. pedestrian zone EV). In addition, Toyota is planning six EV variations for global deployment, joint development with Subaru of mid- and large-sized vehicles in five body types, as well as plans to jointly develop compact EVs with Suzuki and Daihatsu.

  The Toyota ZEV Factory is responsible for the EVs introduced in this report, from the business and EV product planning phases to commercialization. As of June 2019, this Toyota internal organization has 290 employees, including dedicated engineers being sent on loan from more than 20 partner companies and organizations, and that number is expected to expand to nearly 2,000 employees in the near future.

  With regards to the supply of batteries, Toyota anticipates that by 2025 an approximate 20-fold increase in EV battery capacity will be needed compared to 2018. In addition to its established suppliers such as Panasonic and Primearth EV Energy, Toyota plans to source batteries from GS Yuasa, Toshiba, CATL and BYD. The group's Toyota Industries also manufactures batteries.

  Based on the concept that technologies must be made widely available to be of any value in helping to improve the global environment, and rather than go it alone, Toyota wants to extensively and openly invite partners to accelerate its initiatives and efforts together.

Toyota initiatives to promote the popularization of EVs

Using a coordinated approach, Toyota will create partnerships in an extensive and open manner to promote initiatives aimed at the construction of new business models
(1) Endeavor to create a new business model leveraging ultra-compact EVs, starting in Japan
(2) For regions where the EV market is already being established, such as the U.S, Europe, and China, efficiently develop various types of EVs adapted to market needs at low cost
(3) Develop high-performance batteries, resistant to battery degradation, which is the key to improved performance, and construct a system to supply batteries to meet the rapidly expanding demand for electrified vehicles

Source: Toyota


Related report:
Toyota's Electrified Vehicle Strategy: Sales of 5.5 million units and 1 million ZEV vehicles by 2030 (Apr. 2018)