Photo: Toyota | Edited
Toyota is not the most agile carmaker when it comes to building electric vehicles. The new management pledged to turn this around and is now preparing the U.S. production of an electric SUV starting in 2025. The move is intended to capitalize on IRA incentives in the U.S.
Toyota disappointed many people with its reluctance to embrace electric vehicles. Once an eco-pioneer, thanks to the Prius hybrid car and the RAV4 EV, Toyota is now seen as the laggard of the auto industry. Things could've been much different had Toyota pursued past EV projects more vigorously. The first generation RAV4 EV (1997-2003) was merely a compliance car leased in California to meet the state's mandate for zero-emission vehicles.
Still, the second generation used a Tesla drivetrain and batteries and sold around 2,500 units between 2012 and 2015. While the production seems small, it's still impressive, considering it sold only in California. Toyota bought a $50 million stake in Tesla in 2010, which explains the partnership. Both parties were thrilled to cooperate at the time, although the alliance would not last long. Toyota decided that it had enough with electric vehicles after that experiment. The Japanese carmaker sold its stake in Tesla in 2017 and started its own electric car division.
How this worked out is more than obvious now. Its former partner Tesla is the undisputable leader of the EV market, having sold 1.3 million electric vehicles in 2022. Toyota's EV division has produced only 24,000 EVs under its own and Lexus brands in 2022. The Toyota bZ4X failed to impress, having inferior characteristics to other EVs on the market. To add insult to injury, the bZ4X had to be recalled because its wheels fell off. This is embarrassing for a carmaker that once was praised for its legendary reliability.
Many thought things were about to change in December 2021, when Toyota CEO Akio Toyoda announced 30 electric vehicles by 2030. The ambitious plan took everyone by surprise, but it deflated just as quickly. More than a year later, Toyota is still betting on the internal combustion engine and is talking about new electric vehicles as if they were some alien technology that would not be here for the foreseeable future. Even the new CEO, Koji Sato, who will take over from Toyoda in April, avoids dreaming big about electric vehicles.
Still, thanks to government incentives in the U.S., Toyota might want to finally embrace EVs. If not for their benefits, at least for the money. According to Nikkei Asia, Toyota is considering producing a new electric SUV in the U.S. to capitalize on IRA benefits. Toyota intends to overhaul its factory in Kentucky, where it assembles the Camry, RAV4, and Lexus ES. The Japanese carmaker aims to produce 10,000 electric SUVs per week, alongside ICE and hybrid vehicles.
Toyota will supply the batteries from a new plant slated to start operations by 2025, enabling the carmaker to make electric vehicles entirely in the U.S., from key components to final assembly. The annual production goal is around 200,000 EVs from 2026 onward, representing about 20% of the factory's capacity. It's unclear whether the upcoming SUV would use the new EV platform Toyota is working on, but we guess it wouldn't make sense to use the e-TNGA anymore.
Still, the second generation used a Tesla drivetrain and batteries and sold around 2,500 units between 2012 and 2015. While the production seems small, it's still impressive, considering it sold only in California. Toyota bought a $50 million stake in Tesla in 2010, which explains the partnership. Both parties were thrilled to cooperate at the time, although the alliance would not last long. Toyota decided that it had enough with electric vehicles after that experiment. The Japanese carmaker sold its stake in Tesla in 2017 and started its own electric car division.
How this worked out is more than obvious now. Its former partner Tesla is the undisputable leader of the EV market, having sold 1.3 million electric vehicles in 2022. Toyota's EV division has produced only 24,000 EVs under its own and Lexus brands in 2022. The Toyota bZ4X failed to impress, having inferior characteristics to other EVs on the market. To add insult to injury, the bZ4X had to be recalled because its wheels fell off. This is embarrassing for a carmaker that once was praised for its legendary reliability.
Many thought things were about to change in December 2021, when Toyota CEO Akio Toyoda announced 30 electric vehicles by 2030. The ambitious plan took everyone by surprise, but it deflated just as quickly. More than a year later, Toyota is still betting on the internal combustion engine and is talking about new electric vehicles as if they were some alien technology that would not be here for the foreseeable future. Even the new CEO, Koji Sato, who will take over from Toyoda in April, avoids dreaming big about electric vehicles.
Still, thanks to government incentives in the U.S., Toyota might want to finally embrace EVs. If not for their benefits, at least for the money. According to Nikkei Asia, Toyota is considering producing a new electric SUV in the U.S. to capitalize on IRA benefits. Toyota intends to overhaul its factory in Kentucky, where it assembles the Camry, RAV4, and Lexus ES. The Japanese carmaker aims to produce 10,000 electric SUVs per week, alongside ICE and hybrid vehicles.
Toyota will supply the batteries from a new plant slated to start operations by 2025, enabling the carmaker to make electric vehicles entirely in the U.S., from key components to final assembly. The annual production goal is around 200,000 EVs from 2026 onward, representing about 20% of the factory's capacity. It's unclear whether the upcoming SUV would use the new EV platform Toyota is working on, but we guess it wouldn't make sense to use the e-TNGA anymore.
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