Toyota shifts gears, aims to build 1.5 million electric vehicles in 2026
Company restructuring to take on Tesla
Toyota is accelerating the growth of its electric vehicle offerings as it plays catchup in the increasingly important segment.
The automaker outlined its new strategy during an event in Tokyo on Friday.
"In the next few years, we will expand our line-p in the important battery electric category," Toyota President Koji Sato said.
The plan includes the launch of 10 new electric vehicles globally that will be manufactured at an annual production rate of 1.5 million by 2026.
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Koji Sato, president of Toyota Motor Corp., outlined Toyota's new plan during a presentation in Tokyo on Friday. (Akio Kon/Bloomberg via Getty Images)
Toyota currently offers just three fully electric models and sold less than 25,000 last year, according to Reuters, compared to 2.6 million hybrids.
The Toyota bZ4X is the brand's only fully electric vehicle sold in the U.S. (REUTERS/Mike Blake)
The automaker's new EV production goal is 300,000 higher than was previously forecast, according to S&P Global Mobility.
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Toyota has primarily focused on hybrid technology in recent years, and Sato said that would remain a priority at the company, even as more fully electric vehicles are added.
Toyota has launched a new version of the Prius hybrid for 2023. (Jeenah Moon/Bloomberg via Getty Images)
It reportedly began to rethink its plans late last year and suspended work on several EV projects that had been announced in 2021.
An examination of the construction of a Tesla Model Y that one executive described to Automotive News as a "work of art" and "unbelievable" helped drive the company to change to an "EV-first" mindset, rather than designing battery-powered models using the same engineering as its internal combustion engine vehicles. A new unit focused on EVs will oversee their development.
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Toyota did not announce any specifics on the 10 vehicles it will be introducing through 2026, but did say a three-row SUV would be in production in the U.S. in 2025 using locally-sourced batteries that would qualify it for tax credits.