Despite a slow start, Toyota plans to accelerate electric vehicle output over the next several years. The Japanese automaker aims to triple EV production of Toyota and Lexus brand models in 2025 as mass production begins.
Toyota to triple EV production in 2025
According to a new report from Nikkei, Toyota is now aiming to produce 600,000 electric cars in 2025, tripling the expected 2024 output of 190,000 units.
Toyota intends to sell 1.5 million EVs by 2026 with ten new all-electric models, including SUVs, crossovers, small cars, luxury, and commercial. By 2030, the automaker plans to sell 3.5 million EVs or about one-third of its global volume.
The report notes Toyota has already notified several of its major suppliers of its planned EV production ramp over the next few years.
Last year, Toyota and Lexus sold a total of 24,466 fully electric cars, representing just 0.26% of overall sales.
The trend has continued this year with a little over 7,400 units sold through the first seven months of 2023, still less than 1% of overall sales. In the US, Lexus has sold 2,068 units of its first EV, the RZ electric SUV. Meanwhile, through the first half of the year, Toyota sold 3,659 units of its sole electric car, the bZ4X.
Stepping up in the EV era
Over the past several weeks, Toyota has revealed a few new technologies and other innovations designed to help it compete with EV leaders like Tesla and BYD.
At a technical workshop in June, we got a glimpse of Toyota’s next-gen EV batteries, design improvements, and manufacturing upgrades to cut costs and boost efficiency.
More recently, the company revealed its next-gen EV battery roadmap. The plans include advanced electric models due out in 2026 with nearly 500 miles (800 km) range, aligning with Toyota’s new production ramp plans.
Earlier this week, Toyota showed off its future EV production line, including Giga casting technology, self-propelled assembly lines, and robots to transport finished vehicles, all designed to help it cut costs and increase output in the wake of the industry shakeup.
New Lexus brand boss Takashi Watanabe claimed the brand will spearhead Toyota’s next-gen EV offensive. Watanabe said it will “humbly look at and learn from” Tesla’s manufacturing success as it looks to compete in the coming electric age.
We’ve heard this story many times before that Toyota is ramping up EV output. But, this time, it may be different.
Leaders at Toyota and Lexus are expressing urgency to keep up as electric vehicle sales continue climbing globally. If the automaker wants to remain competitive as the industry transitions, it will need to stay ahead of the pack, and so far, it’s well behind.
The new innovations will help Toyota compete, but waiting until 2026 could cost it. By then, there will be even more advanced batteries, designs, and manufacturing processes.
Furthermore, with only one-third of planned vehicle sales being purely electric by 2030, Toyota is already setting itself up for failure.
Many automakers are already achieving double-digit or 100% EV sales. Meanwhile, Toyota aims for around 33% EV sales share by the end of the decade.