Toyota to fast-track electric-car rollout under new global boss

Toyota is set to speed up its introduction of electric vehicles – led by its Lexus luxury division – under the watch of its new CEO, amid criticism it has been sluggish to adopt battery-powered cars.

However, the Japanese car giant maintains its belief in offering multiple types of low-emissions vehicles – including hybrid, plug-in hybrid and hydrogen power – to meet the needs of buyers who aren't yet able to switch to purely-electric propulsion.

In a media briefing overnight, new Toyota president and CEO Koji Sato – who this coming April is due to succeed 13-year company boss Akio Toyoda, who brought more excitement to the way Toyota cars look and drive – said the company will ramp up its rollout of electric vehicles.

MORE: Akio Toyoda steps out of the driving seat at Toyota

"To deliver attractive [electric vehicles] to more customers, we must streamline the structure of the car, and – with an [electric]-first mindset – we must drastically change the way we do business, from manufacturing to sales and service," Mr Sato said.

"Now that the time is right, we will accelerate [electric vehicle] development with a new approach."

Toyota's luxury division Lexus – which has already indicated plans to go electric-only by 2035 globally – will lead the transition, Mr Sato said, with a range of "next-generation" dedicated electric models "by 2026".

The executive – who formerly led Lexus, along with Toyota's Gazoo Racing performance-car division – said the car giant intends to stick to its previously-announced target of selling 3.5 million electric vehicles annually by 2030.

The company announced plans in 2021 to launch 30 electric cars by 2030.

MORE: Toyota changing course on its electric vehicle strategy – report

Toyota has been subject to criticism from supporters of electric vehicles, who say the Japanese car giant has been slow to adopt the technology – even though it has reduced the emissions of millions of vehicles with hybrid technology over the past two decades.

"We are receiving [much] feedback that some people say that we are slow, and sometimes this is because of our communication failure," Mr Sato told media, through a translator.

While Mr Sato acknowledged criticism of the company's electric-car rollout, the executive said Toyota would continue to offer customers a range of emissions-reducing options, as some markets are more advanced than others in their switch to electric power.

"The message has been consistent in terms of [electric vehicles]. This has not changed. One of the options [for future electrified cars] is [electric cars], and therefore we are going to accelerate specific and concrete activities on [electric cars]," he said.

"The energy environment is different from country to country, and the political and economic situations are different from country to country ... We have always believed that we need to offer options.

"On the other hand, there are many countries where electrification has advanced, so those areas and those markets we need to also show and roll out a concrete [electric-vehicle] product.

Mr Sato claims "electrified" vehicles – hybrid, plug-in hybrid, electric and hydrogen vehicles – account for 23 per cent of all global new-car sales, but the Toyota group's range of hybrid cars has allowed electrified models to account for 26 or 27 per cent of sales.

More details of Toyota's expedited electric-car rollout are expected after Mr Sato takes office as president of the company in April – and Akio Toyoda steps back to become chairman.

However, it is expected to include a greater number of models, and improvements to production to make electric vehicles faster and cheaper to build.

When the 66-year-old executive announced his decision to step down as Toyota president and CEO last month, Mr Toyoda told international media: "I’m a car-maker through and through, and that’s how I’ve transformed Toyota.

"But a car-maker is all that I am. That is my limit. The new team under president Sato has the mission to transform Toyota into a mobility company."

Toyota's first electric vehicle to be sold globally is the BZ4X family SUV – but it has experienced a stalled start, after production was halted and deliveries were paused to fix an issue with the car's wheels falling off.