Toyota responds to concerns regarding the speed with which the electric vehicle transition is taking place

Toyota responds to concerns regarding the speed with which the electric vehicle transition is taking place

Toyota has repeatedly been into controversy for publicly opposing the idea of the global car industry becoming totally electrified. Toyota recently saw a 2 percent drop in its stock value due to an exodus of green activist investors. This came after environmentalists protested Toyota’s purported lobbying tactics that go against the industry’s climate regulations.

Toyota has rebuffed critics who claim the company has been reluctant to adopt electric vehicles, claiming it needs to provide a choice of powertrains to cater to diverse regions and customers. The world’s globe’s automaker by sales reiterated at its yearly general meeting that it would continue to invest in technologies such as full-hybrid and fuel cell automobiles that have made it a giant in greener vehicles for the past twenty years.

Toyota has been under pressure from certain investors for not slowly getting rid of gasoline-powered cars and campaigning on climate legislation while being a favorite among Environmental activists for the Prius full-hybrid it introduced more than twenty years ago.

“The objective is carbon neutrality,” Toyota Chief Technology Officer (CTO) Masahiko Maeda said at the meeting in response to queries from AkademikerPension, a Danish pension fund, which in addition asked Toyota to desist from lobbying against the transition to fully electric vehicles.

However, in order to promote electrified cars, such as plug-in hybrids, “buyers must choose,” according to Maeda. He believes that a variety of choices should be offered and that the automaker should not limit them.

Toyota claims that hybrids are still viable in markets where infrastructure isn’t ready to enable a faster transition to electric vehicles, and it’s investigating the potential of green fuels for ICE (internal combustion engines), such as hydrogen.

According to Seiji Sugiura, who is a senior analyst based at Tokai Tokyo Research Institute, there is a divide between Toyota’s “pragmatic” approach to decarbonization and environmental groups’ demands for fast action.

He added that the perspectives are not diametrically opposed and that Toyota has been working to reduce greenhouse gas emissions at the vehicle manufacturing stage. Last year, the business pledged to invest 8 trillion yen ($60 billion) in electrifying its vehicles by 2030, half of which will go toward the development of fully electric vehicles.

Nonetheless, Toyota estimates that yearly sales of such vehicles will total only 3.5 million by the close of the decade, or about a third of current sales. Last month, the manufacturer unveiled its maiden mass-produced full-electric vehicle in Japan, though only for lease, as gasoline-electric hybrids remain significantly more popular.

Nissan, a Toyota competitor and an initial pioneer in the shift to Electric Vehicles with its own Leaf hatchback, is also taking a more deliberate approach to going all-electric. Guillaume Cartier, the automaker’s Europe chief, stated in an interview hosted by Automotive News Europe that the business is revamping its lineup with a combination of vehicles that comprise its e-Power hybrid and full-electric drivetrains technology.

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