Toyota Capitalizes on Tesla’s Brand Vulnerability with New EV Offerings
Recent developments in the electric vehicle (EV) market suggest a significant shift in consumer preferences, with Toyota positioning itself to gain significant market share. While Tesla CEO Elon Musk’s brand reputation faces difficulties, the demand for EVs continues to rise. Toyota is stepping into niche markets previously dominated by Tesla, including targeting younger demographics.
European Market Expansion
Even before recent controversies, some industry observers noted vulnerabilities in the Tesla brand. As other automakers launch their own EVs, the initial appeal of a new Tesla model has lessened. Currently, the Tesla brand has been perceived as bland and out of touch by some consumers.
Toyota is particularly keen on growing its presence in the European market, where the Tesla brand has faced political challenges. The company recently launched three new EVs in Europe, including the C-HR+, an electrified version of its popular C-HR compact crossover SUV.
FT-Me Mini-Car Concept
Toyota followed up with a preview of its FT-Me mini-car concept. The design, inspired by a jet fighter helmet, uses contrasting black and white elements to convey safety, durability, and a lightweight, ‘go-anywhere’ feel. The FT-Me is designed to address mobility solutions, particularly for city dwellers and modern urban environments, informed by Toyota’s experiences in the Tokyo 2021 and Paris 2024 Olympic and Paralympic Games. The FT-Me’s wheelchair accessibility is another key feature, designed to meet diverse user needs.
At approximately 8 feet in length, the FT-Me is built for urban mobility, capable of fitting into compact parking spaces. With the needs of first-time buyers in mind, Toyota also emphasizes the safety aspects of its vehicle lines. “Its enhanced versatility is designed to cater to diverse user needs, offering customizable options for both teenagers and professionals and an innovative 360-degree visibility concept ensures maximum eye-contact with other road users, enhancing safety and manoeuvrability,” Toyota stated.
Sustainability and Efficiency
Beyond accessibility and safety, Toyota is also focusing on sustainability. Compared to Tesla, which has been focusing on zero emissions, Toyota is emphasizing supply chain cleanup. The FT-Me aims to reduce its carbon footprint by 90% compared to other city cars. This goal is partly achieved by utilizing recycled and recyclable materials, along with a highly efficient propulsion system.
“The FT-Me’s efficient propulsion system consumes three times less energy per kilometer than a high-capacity battery electric car,” Toyota officials say. Moreover, the FT-Me has incorporated solar panels, asserting that under city driving conditions, the solar panels can add 20 to 30 kilometers (up to 18.6 miles) of range to the battery.
While Toyota still markets the Mirai, the company’s hydrogen fuel cell electric passenger car offering, the focus seems to be shifting towards buses and other commercial-scale passenger EVs. Last month, Toyota unveiled its third-generation fuel cell system designed for commercial use, with expansion into the heavy-duty commercial market planned. The Tri-Gen project at the Port of Los Angeles illustrates the company’s plans, where a fleet of 30 fuel cell trucks has replaced diesel vehicles. The much-delayed Tesla Semi heavy-duty electric truck is in its fifth year of pilot-scale production with a 2026 production-scale launch reportedly in the works. Also in the heavy-duty truck market, Toyota launched its new battery-electric Tern heavy-duty truck in North America last year.
