Toyota’s Late Entry into the EV Race
Toyota, long recognized as a leader in hybrid vehicles, is now facing a challenge in the rapidly expanding electric vehicle (EV) market. Unlike its competitors, Toyota’s foray into fully electric cars has been relatively slow, raising questions about its future in key markets like the UK. As one of the few foreign automakers with a direct investment in the UK, Toyota’s shift to EVs is particularly important.
Toyota’s chairman, Akio Toyoda, has emphasized the company’s commitment to creating “ever-better cars.” However, the initial reception of the bZ4X, Toyota’s first all-electric battery vehicle, has been lukewarm, suggesting that the company’s early efforts have not met consumer expectations.
Toyota’s next generation of electric cars is slated for release, which places the company behind its rivals. The bZ4X, launched less than three years ago in the UK, was criticized for its design and range. Problems with the car’s wheel nuts led to a recall, further impacting its debut.
Reviews of the bZ4X have been mixed, with some critics describing it as uninspired. Toyota has acknowledged “bumps in the road” with its initial EV offering and has promised improvements in the next generation of EVs, including increased power, range, and faster charging. The company also highlights that the bZ4X has become a bestseller in Norway and Denmark.
Regulatory Climate and Toyota’s Strategy
The timing of Toyota’s entry into the EV market reflects changing regulations and consumer demand driven by the 2015 “dieselgate” scandal. The scandal forced automakers to prioritize zero-emission vehicle production due to emissions cheating.
Toyota, however, viewed hybrid vehicles as the key to meeting its commitments to environmental protection, and believed that they were a bridge to a future powered by hydrogen fuel cells. The company invested in the development of the Mirai, a hydrogen fuel cell car, but has since shifted its focus to hydrogen’s potential in heavy goods vehicles.
Implications for UK Manufacturing
Toyota is now working to convince governments to relax regulations in order to provide some breathing room for the transition to electric vehicles. The company argues governments are not doing enough to improve customer demand. The EU has already adjusted its CO₂ emission rules, while the UK are considering relaxing its zero-emission vehicle mandate.
Toyota’s pure-electric vehicle sales have so far remained low in the U.K. due to the limited availability of models. The company aims to introduce additional electric models later this year. The future of Toyota’s Burnaston plant near Derby, which is one of the final foreign-based carmakers in the UK, hinges on the company’s shift, with the plant’s production heavily skewed towards the European Union market.
Burnaston’s output was slashed significantly after 2008. The main question now is how to retool the facility to produce electric cars. The relaxation of EU emissions targets has, at least temporarily, extended the life of Burnaston’s hybrid production. Some 2,300 employees and thousands more in its supply chain hope the company’s electric drive extends to their home off the A52.
