Introduction
Toyota, the world’s largest carmaker in terms of sales, has long been known for its strategy of developing hybrid vehicles, such as its best-selling Prius model. However, the company’s focus on hybrids and hydrogen-fuel-cell cars has resulted in it falling behind in the race to develop electric vehicles (EVs). But with a new CEO set to take over in April 2023, Toyota is poised to enter a new era and make a renewed push into the EV market.
A Brief History of Toyota’s Relationship with EVs
For many years, Toyota has been hesitant to fully embrace the shift toward EVs. The company has argued that consumers were not yet ready to adopt electric vehicles, and as a result, Toyota favored a policy of small steps toward electrification. However, this approach has allowed rival Tesla to emerge as the leader in the EV market.
In 2010, Toyota and Tesla announced a partnership to jointly develop an electric version of Toyota’s RAV4 SUV and also consider a Lexus RX electric SUV. But this partnership was short-lived, as a clash of corporate cultures led to the partnership ending in 2014. Toyota then sold its stake in Tesla in 2017.
The Rise of Tesla and the EV Market
While Toyota has been slow to embrace the shift towards EVs, Tesla and its CEO, Elon Musk, have managed to convince governments around the world to promote EVs through tax credits and numerous public subsidies. This has resulted in Tesla becoming the leader in the EV market and the barometer for the world’s automobile industry.
As of 2021, 7.8 million EVs were sold worldwide, representing 10% of the total number of vehicles sold, up 1.7% compared to 2020, according to data from LMC Automotive. In addition, all of Toyota’s competitors are now betting on EVs, with sales continuing to increase.
Toyota’s Recent Struggles and the Need for Change
In recent months, Toyota has struggled to keep up with the rapid shift towards EVs. In October 2022, the company announced that it would invest $70 billion in electrified vehicles, with half of that figure in 100% electric vehicles. However, unlike other manufacturers, Toyota’s carbon-emissions-reduction strategy was not centered on battery electric vehicles.
This lack of a clear roadmap has resulted in the company falling behind in the race to develop EVs. To make matters worse, the current CEO, Akio Toyoda, has been seen as a barrier to change as rivals’ lead in EVs continues to grow.
A New Era at Toyota: The Appointment of a New CEO
To address these challenges and make a renewed push into the EV market, Toyota has announced that CEO Toyoda will be stepping down on April 1, 2023. He will be replaced by Koji Sato, Toyota’s chief branding and head of the premium brand Lexus.
Sato will take advantage of the results of a working group set up in 2022 to reflect on a change of strategy in EVs. The conclusions of this task force were expected at the beginning of 2023. This is seen as Toyota’s admission that consumers are adopting EVs at a faster rate than it thought, and that the company needs to catch up with its competitors.
Conclusion
Toyota’s new CEO, Koji Sato, has a monumental task ahead of him as he takes over the helm of the company in April 2023. Sato must lead Toyota in pursuit of Tesla and the EV market, which has been growing at an unprecedented rate. However, with the results of the company’s task force on EVs expected soon, and a renewed focus on electric vehicles, Toyota is well-positioned to make a comeback
in the electric vehicle market. The company’s significant investment in electrified vehicles, and its commitment to reducing carbon emissions through a variety of powertrain options, including hydrogen fuel cells and traditional rechargeable lithium-ion battery packs, shows that Toyota is serious about catching up to its rivals.
Sato’s experience with the premium brand Lexus, and his understanding of branding and consumer preferences, will be vital in ensuring that Toyota’s electric vehicles are competitive in terms of design, features, and pricing. Furthermore, Sato’s leadership and vision will be crucial in driving the company’s overall strategy and aligning it with the rapidly changing market.
It’s worth noting that Toyota has a proven track record of innovation and success in the automotive industry. With a loyal customer base and a strong global presence, the company has the resources and capabilities to make a significant impact in the EV market.
In conclusion, the EV market is evolving rapidly, and Toyota’s new CEO, Koji Sato, has a challenging but exciting opportunity to lead the company in a new direction. With the right strategy and execution, Toyota has the potential to once again become a leader in the automotive industry and gain a foothold in the electric vehicle market. The future looks bright for Toyota, and we can expect to see some exciting developments and innovations from the company in the coming months and years.