AUTONEWS

As electrification continues to accelerate, Toyota maintains its conservative approach

Toyota remains confident that its gradual and cautious approach to electrification is the right strategy.

While other automakers are betting big on all-electric vehicles, the Japanese brand is maintaining its long-term vision, investing in emerging technologies such as solid-state batteries and adopting advanced manufacturing processes such as gigacasting, popularized by Tesla.

According to Andre Schmidt, head of revenue management at Toyota Europe, the automaker is not late in the electric vehicle market, but rather moving at the right pace.

During a conference call held on February 26, Schmidt said: “We are not late with BEVs [battery electric vehicles], but we are right on time.”

Toyota is preparing to launch a new electric coupe-style crossover for the European market on March 12. In addition, it plans to expand its BEV lineup in the region to six models by 2026. Despite this progress, the company still does not see a definitive end to combustion engines, maintaining its diversified electrification strategy with hybrids and plug-in hybrids alongside pure electrics. 

In 2024, Toyota saw its electric vehicle sales in Europe grow by 36%, reaching 26,294 units, according to Dataforce. However, this volume represented only 3.6% of the brand's total sales on the continent, well below the average of 15.3% for the European BEV market. 

With stricter emissions rules in the European Union coming into effect, Toyota expects its share of EVs to grow to between 20% and 25% by 2025. To avoid fines for failing to meet CO2 emissions targets, the automaker will buy carbon credits from Tesla, in a pool that also includes Stellantis, Ford, Mazda and Subaru. 

Production with Gigacasting...To increase production efficiency, Toyota will adopt gigacasting technology, a manufacturing method developed by Tesla that allows large sections of the body to be produced in a single cast piece. This reduces the time and cost of assembling vehicles.

In addition to Toyota, other automakers such as Volvo, Nissan, Ford and Hyundai are investing in this process to replace several parts and make production more efficient.

However, Stellantis stated that it does not see any benefits in adopting this technology and will continue with traditional assembly methods.

One of Toyota's biggest investments for the future of electrification is in solid-state batteries, which should begin to be introduced in its vehicles from 2028.

This technology promises to increase the autonomy of EVs, reduce recharging times and reduce the weight of vehicles.

The automaker has already confirmed that it will have a “limited production” of vehicles equipped with these batteries until that date. In the meantime, other manufacturers are also exploring this technology.

Mercedes-Benz, for example, has begun testing solid-state batteries in partnership with the American startup Factorial, which also collaborates with Stellantis and Hyundai-Kia. However, some brands still see challenges in the commercial viability of solid-state batteries. BMW considers the technology too expensive to be commercialized on a large scale and will continue to focus on the development of lithium-ion batteries. 

Renault, which announced a partnership with Airbus to explore this type of battery, currently prioritizes cobalt-free lithium-ion batteries, although it maintains research into solid-state batteries as a future goal. The Volkswagen Group continues to invest in the technology through strategic partnerships. 

Toyota Goes Its Own Way... While some automakers are rushing to fully electrify their fleets, Toyota maintains its conservative approach, betting on technology diversification. Its investments in solid-state batteries and gigacasting indicate that the company is focused on the future, but without giving up the hybrid strategy that has made it a global leader in electrification. 

With projected growth for its EVs and advanced manufacturing solutions on the way, Toyota appears to be preparing for an electric future, but at its own pace – and with a keen eye on market changes and consumer preferences.

Mundoquatrorodas