Toyota’s Vision for the Future of Cars
Toyota recently held a technical briefing, showcasing its strategy to become a leading mobility company. The event highlighted innovative technologies centered on battery electric vehicles (BEVs) and the establishment of a hydrogen business. This represents a comprehensive approach to reshaping the automotive industry.
Toyota’s strategy hinges on three core areas: electrification, intelligence, and diversification. The company plans to introduce optimized powertrains for various regions, expand its societal connections, and broaden its business scope to include diverse energy solutions.
To support these technological advancements, Toyota has been shifting resources to advanced development, investing heavily in future-oriented areas since 2016. As of March 2023, more than half of its R&D staff and expenses are dedicated to these advanced fields.
Toyota is focusing on three key areas to advance car manufacturing. These are safety and security, building the future through collaboration, and accelerating localization to meet regional customer demands.
Toyota has a history of overcoming challenges, delivering groundbreaking vehicles like the Prius hybrid and the Mirai fuel cell car. The goal is to use technology to connect cars with society and transport customers into the future.
Next-Generation Battery EVs
The BEV Factory, established in May, aims to revolutionize the future with battery EVs. It focuses on transforming cars, manufacturing processes, and work methods to achieve this goal.
On the vehicle front, Toyota is targeting a 1,000 km cruising range using next-generation batteries and sonic technology. Design will be enhanced with aerodynamic performance supported by AI. The Arene OS and full OTA (over-the-air) updates are designed to expand the possibilities for enjoying cars.
Manufacturing will shift to a modular structure using three main components. Giga casting will integrate components, reducing development costs and factory investment. Self-propelling production technology will further streamline processes.
The BEV Factory operates as a unified team, integrating functions and regions, with the goal of rapid decision-making and efficient execution. The next-generation BEVs are scheduled for a global rollout in 2026, with a full lineup. By 2030, the BEV Factory expects to produce 1.7 million units out of a total of 3.5 million.
These next-generation battery EVs will lead the industry in energy consumption. The company aims to exceed customer expectations and secure earnings.
Hydrogen Business Strategy
The hydrogen market, especially in Europe, China, and North America, is expected to grow significantly by 2030. The fuel cell market is poised for rapid expansion, with a projected value of 5 trillion yen per year.
Toyota is already promoting the external sale of fuel cells based on the Mirai’s hydrogen units, with orders for 100,000 units by 2030, mainly for commercial vehicles.
To respond to market changes, the Hydrogen Factory will be launched in July. This new organization will handle everything from sales to development and production under a single leader. It will focus on localizing R&D and production, strengthening alliances with partners, and advancing next-generation FC technologies. A 37% cost reduction is anticipated through technological progress and localization.
With partners, if they receive offers for 200,000 units in 2030, they will be able to reduce the cost by 50% and generate a solid profit while meeting the expectations of our many customers and governments.
Toyota is actively working to address high hydrogen prices, partnering to improve production, transport, and usage. The company will establish customer-oriented bases in major markets and offer affordable products in sufficient quantities.
Electrified Technologies and Beyond
Toyota is dedicated to creating “zero” environmental impact and adding new value, contributing to a better future for all. The “Beyond Zero” initiative represents this commitment, providing innovative mobility solutions that improve lives.
Toyota Motor Corporation continues to develop innovative, safe, and high-quality products and services. The company’s guiding principles, established over 80 years ago, promote a safer, greener, and more inclusive society. As Toyota transforms into a mobility company, it remains committed to these principles and the United Nations’ Sustainable Development Goals.
