Photo: Benny Kirk/Autoevolution
Japanese giant Toyota rolled out its first mass-produced BEV on Thursday in Japan, for lease only. According to the automaker, this approach will help remove the doubt car buyers have over the life and resale value, a move that has raised industry analysts’ eyebrows, Reuters reported.
With gas prices rising astronomically all over the globe, analysts argue the industry needs to shift into electric vehicles quickly. In March, U.S. President Joe Biden called for the shift, saying gas prices would be a non-issue with an economical switch to electric transportation.
Automotive industry leaders, including Tesla, are already making inroads into the global market, pushing their brand to Toyota’s backyard in Japan.
However, hybrid vehicles are still the top-ranking alternative in Japan’s domestic market compared to electric vehicles. Last year, fully electric vehicles accounted for 1% of the total number of passenger cars sold in the country, even as demand and the market improved.
Cumulating insurance, repair, and battery warranty into the deal, Toyota seeks to lease the bZ4X SUV for about $39,000 in the first four years. Canceling in the first 48 months will attract additional costs.
EV acceptance is generally slow in Japan, forcing the automaker to adopt a leasing strategy rather than purchasing. Chris Richter, a CLSA analyst, feels this model places itself in a position where it could lose market share.
According to Richter, anything the automaker does that makes it harder to buy is a dangerous move and potentially means Toyota is not giving its domestic market the seriousness it deserves.
The Japanese giant is looking to lease about 5,000 bZ4X SUVs in the local market in the current fiscal year.
Last year, the company announced that it would introduce 30 new BEVs by 2030 and aims to sell about 3.5 million units per year globally. It's also looking to commit about $62 billion to electrify its fleet.
This rollout comes after the automaker reported it's anticipating a 20% profit dip due to the rising cost of raw materials.
Automotive industry leaders, including Tesla, are already making inroads into the global market, pushing their brand to Toyota’s backyard in Japan.
However, hybrid vehicles are still the top-ranking alternative in Japan’s domestic market compared to electric vehicles. Last year, fully electric vehicles accounted for 1% of the total number of passenger cars sold in the country, even as demand and the market improved.
Cumulating insurance, repair, and battery warranty into the deal, Toyota seeks to lease the bZ4X SUV for about $39,000 in the first four years. Canceling in the first 48 months will attract additional costs.
EV acceptance is generally slow in Japan, forcing the automaker to adopt a leasing strategy rather than purchasing. Chris Richter, a CLSA analyst, feels this model places itself in a position where it could lose market share.
According to Richter, anything the automaker does that makes it harder to buy is a dangerous move and potentially means Toyota is not giving its domestic market the seriousness it deserves.
The Japanese giant is looking to lease about 5,000 bZ4X SUVs in the local market in the current fiscal year.
Last year, the company announced that it would introduce 30 new BEVs by 2030 and aims to sell about 3.5 million units per year globally. It's also looking to commit about $62 billion to electrify its fleet.
This rollout comes after the automaker reported it's anticipating a 20% profit dip due to the rising cost of raw materials.
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