Is Toyota catching up in the US electric vehicle market? Although Toyota’s US boss, Ted Ogawa, admits it’s behind Tesla, he believes the company is “catching up” on electric vehicles and new tech.
Toyota has been among the biggest laggards in shifting to fully electric vehicles. After a rocky start (including a recall) with the launch of its first EV in the US, the bZ4X, Toyota has failed to gain traction in the market.
Of the over 2.2 million Toyota vehicles sold in the US last year, only 9,329 were all-electric, or less than 0.5%.
The trend has continued this year, with only 1,897 bZ4X models sold through March. That’s less than 0.4% of the over 486,000 Toyota vehicles sold in Q1.
Ogawa says Toyota is watching customer demand for EVs rather than regulations. “However, the BEV was our missing piece two years ago, so that’s why we were very much criticized,” Ogawa explained in a new interview with Automotive News.
After building internally over the past two years, Toyota’s US boss believes the company is “catching up” on electric vehicles and new tech.
Is Toyota catching up on electric vehicles?
For example, Ogawa said that Toyota headquarters is building a “very exclusive factory” for EVs.
The new “BEV Factory” will feature several new technologies new to Toyota. The company showed off its next-gen EV production line last year with Giga casting, a process made popular by Tesla.
Toyota says its “wealth of knowledge” about molds will help speed up production. The company believes it can reduce the lead time for changing molds to around 20 minutes compared to 24 hours.
Other tech like self-propelled assembly lines and robots are promised to enhance efficiency while minimizing defects.
Toyota also revealed new EV battery plans last summer, including two next-gen batteries due out by 2027. The first “Performance” battery is promised to feature over 800 km (497 miles) range while cutting costs by 20% compared to the bZ4X.
Meanwhile, the “Popularisation” version, due out in 2026-2027, is expected to feature over 600 km (372 miles) range at 40% lower costs.
Further out (2027-2030), Toyota plans to launch a series of “further evolution” batteries, including solid-state batteries with over 1,000 km (621 mi) range and 10-min fast charge.
Ogawa believes “this is kind of the starting year of the real multipath way, like the hybrid, which we already have, and then plug-in, something between hybrid and BEV, and then BEV, which it is time to introduce to the market.”
Although Toyota is “of course” behind Tesla’s battery tech, according to Ogawa, the company is “catching up.” Ogawa said Toyota is not only catching up on EVs but “also the ecosystem surrounding the BEV area, such as the home charging or energy management.”
Electrek’s Take
Is Toyota really catching up this time? We’ve heard this several times in the past from executives.
With EVs accounting for less than 0.4% of sales in the US, Toyota will need to do more to prove it. Toyota planned to launch solid-state EV batteries in 2021 and 2022, but now we are not expected to see them hit the market until around 2028 (at the earliest).
Other tech, like Giga casting and automated production, will help improve efficiency, but new EVs are not expected to debut until 2026.
Toyota has made several investments recently to boost US production, including a $1.4 billion investment in Indiana to build a new electric SUV, separate from its promised three-row EV model.
Can new models and tech help Toyota catch up in the electric vehicle market this time? Let us know your thoughts in the comments.
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