Toyota Motor Corporation is speeding up its production of electric vehicles as it aims to achieve 50% of its sales from these vehicles by the year 2025.
The transformation of the auto industry in the world of electric vehicles has taken everyone by surprise due to an unexpectedly higher demand, which is sharply growing with each passing day. The global shift to electric era has forced the auto manufacturers to alter their plans and look forward to staying ahead in the race. In this connection, Toyota is facing a much higher EV’s demand than the expectations. The future plans of the Japanese auto giant illustrate that it may not be able to keep the pace in producing electric batteries on its own. Toyota is looking up to various Chinese battery makers to help them stay ahead of their schedule in the coming years.
On the other hand, the rigorous emissions regulations also require many more lithium-ion batteries as compared to what the automakers have planned so far for the next five years. It already partnered with Panasonic for the development of rectangular-shaped batteries. Toyota is a pioneer in developing electric vehicle batteries as it did in the case of Prius over two decades ago. It currently makes batteries for hybrid and hybrid plug-in vehicles. However, the automaker accepts that the amount of batteries required is way more than the company can produce in the market. In a briefing, the Executive Vice President of Toyota Shigeki Terashi told that the company would partner with two of the Chinese companies named as Contemporary Amperex Technology Co Ltd (CATL) and BYD Co Ltd for the procurement of batteries. CATL is already attached with other auto manufacturers including Honda, Nissan, and Volvo. He further told that the economies of scale suggest slow profit margins under the growing demand for electric vehicles. He also announced an ultra-compact two-seater EV which is specifically designed for short range. This vehicle could achieve a maximum speed of 60 km per hour under a range of 100 km with a full battery charge.
The electric transformation has been tremendous over the recent years, thus resulting in the reduction of manufacturing costs. However, the sale volumes of gasoline hybrid vehicles are still expected to stay ahead of the electric cars by 2025. According to Terashi, the company is not only prioritizing their focus on just EVs but will continue to produce conventional vehicles as well.
The production of electric vehicles from the Japanese auto giant is a good step towards reducing the impact of smoke emissions on the environment. Stay with PakWheels for more updates on the automobile industry. Leave your comments in the comments space below.
