Toyota CEO Reserves Doubts Over Going Solely EV As Industry Remains Largely Tightlipped

Anusuya Lahiri
·2 min read
21

  • During a Thailand visit, Toyota Motor Corp (NYSE: TM) President Akio Toyoda said he is among the auto industry's silent majority questioning the exclusive pursuit of electric vehicles.

  • Toyoda's concerns reflected a growing uneasiness about how quickly car companies can transition, the Wall Street Journal reports.

  • Challenges mounted, particularly in securing parts and raw materials for batteries and the speed of transition to EVs, as prices have soared this year.

  • While significant rivals, including General Motors Co (NYSE: GM) and Honda Motor Co (NYSE: HMC), shared the dates for their exclusive EV lineups, Toyota chose to invest in a diverse lineup of vehicles that includes hydrogen-powered cars and hybrids.

  • Toyoda saw hybrids as a crucial alternative against costlier EVs with inadequate charging infrastructure.

  • Toyoda also talked about developing zero-emission vehicles powered by hydrogen. Pending clarity, Toyoda found it imprudent to stick to just one option.

  • Toyoda tried to convey this point to industry stakeholders, including government officials.

  • Toyoda said the automaker took every type of vehicle seriously, including EVs. In late 2021, it revealed plans to spend up to $35 billion on its EV lineup through 2030.

  • He also highlighted that alternatives to EVs, like hydrogen-powered vehicles, were beginning to get a warmer reception from government officials, members of the media, and others involved in the auto industry.

  • Auto executives say EV uptake could be uneven for some time and that gas-powered model, hybrids, and plug-in hybrids will endure for many years.

  • Global car companies have shifted to electric vehicles within the last few years, driven partly by the success of EV-only maker Tesla Inc (NASDAQ: TSLA).

  • Price Action: TM shares closed lower by 0.87% at $140.43 on Friday.

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