JavaScript is off. Please enable to view full site.

Toyota commits $70 bln to bolster electrification, shares rally

Toyota commits $70 bln to bolster electrification, shares rally

Wednesday, December 15, 2021, 13:53 GMT+7
Toyota commits $70 bln to bolster electrification, shares rally
Toyota Motor Corporation's bZ models are pictured after a briefing on the company's strategies on battery EVs in Tokyo, Japan, December 14, 2021. Photo: Reuters

Toyota Motor Corp on Tuesday committed 8 trillion yen ($70 billion) to electrify its automobiles by 2030, half of it to develop a battery electric vehicle (BEV) line-up, as it looks to tap a growing market for zero-emission cars.

But the world's biggest carmaker, which is a relative latecomer to full electric cars, said it expected annual BEVs sales to reach only 3.5 million vehicles by the end of the decade, or around a third of its current vehicle sales.

That is less than bigger rivals such as Europe's No. 1 carmaker Volkswagen, which in July predicted that half of its global vehicle sales will be battery-powered cars by that date.

Toyota Motor Corporation President Akio Toyoda speaks at a briefing on the company's strategies on battery EVs in Tokyo, Japan December 14, 2021. Photo: Reuters

Toyota Motor Corporation President Akio Toyoda speaks at a briefing on the company's strategies on battery EVs in Tokyo, Japan December 14, 2021. Photo: Reuters

Even so, shares in Toyota and group companies Toyota Tsusho and Denso rallied on Wednesday, leading gains on the benchmark Nikkei 225 index. Toyota advanced 4.06% while Toyota Tsusho and Denso jumped 4.81% and 4.44%, respectively.

Toyota's announcement comes as traditional automobile firms increasingly take on Tesla Inc, which has become the most valuable carmaker this year. Tesla's market value reached over $1 trillion in October, surpassing the combined value of Toyota, VW, Daimler AG, Ford Motor and General Motors Co.

Speaking at a press conference in Tokyo surrounded by more than a dozen planned BEV models, Toyota CEO Akio Toyoda said his company was still pursuing a multi-pronged, carbon-reduction strategy that also includes hybrid cars and hydrogen-powered vehicles.

"We want to leave all people with a choice, and rather than where or what we will focus on, we will wait a little longer until we understand where the market is going," Toyoda said.

Toyota Motor Corporation's bZ Small Crossover is pictured after a briefing on the company's strategies on battery EVs in Tokyo, Japan December 14, 2021. Photo: Reuters

Toyota Motor Corporation's bZ Small Crossover is pictured after a briefing on the company's strategies on battery EVs in Tokyo, Japan December 14, 2021. Photo: Reuters

His company's plan to introduce a full line-up of 30 BEV's by 2030 goes beyond the 15 models Toyota earlier said it would have available by 2025. The Japanese carmaker on Tuesday also said it planned to invest 2 trillion yen in battery production by 2030, up from the 1.5 trillion yen it announced earlier.

That investment includes $1.29 billion for a new battery plant in North Carolina that will begin production in 2025.

EVs still only account for a small portion of car sales, but the market is growing rapidly, with new registrations up 41% in 2020 even as the global car market contracted by a sixth that year.

Toyota Motor Corporation's bZ SDN is pictured after a briefing on the company's strategies on battery EVs in Tokyo, Japan December 14, 2021. Photo: Reuters

Toyota Motor Corporation's bZ SDN is pictured after a briefing on the company's strategies on battery EVs in Tokyo, Japan December 14, 2021. Photo: Reuters

In November, Toyota declined to join a pledge signed by six major carmakers, including GM and Ford to phase out fossil fuel cars by 2040. It argued that not all parts of the world would be ready to transition to green cars by then.

In addition to electrified cars, Toyota is also developing internal combustion engines that run on hydrogen fuel. Toyoda said the technology could help to save some of Japan's 5.5 million auto jobs by allowing the car company to keep supply chains that would disappear with a full shift to electric cars.

($1 = 113.6900 yen)

Toyota Motor Corporation President Akio Toyoda speaks at a briefing on the company's strategies on battery EVs in Tokyo, Japan December 14, 2021. Photo: Reuters

Toyota Motor Corporation President Akio Toyoda speaks at a briefing on the company's strategies on battery EVs in Tokyo, Japan December 14, 2021. Photo: Reuters

Toyota Motor Corporation's bZ Compact SUV is pictured after a briefing on the company's strategies on battery EVs in Tokyo, Japan, December 14, 2021. Photo: Reuters

Toyota Motor Corporation's bZ Compact SUV is pictured after a briefing on the company's strategies on battery EVs in Tokyo, Japan, December 14, 2021. Photo: Reuters

Toyota Motor Corporation's bZ 4X is pictured after a briefing on the company's strategies on battery EVs in Tokyo, Japan, December 14, 2021. Photo: Reuters

Toyota Motor Corporation's bZ 4X is pictured after a briefing on the company's strategies on battery EVs in Tokyo, Japan, December 14, 2021. Photo: Reuters

Toyota Motor Corporation's cars are seen at a briefing on the company's strategies on battery EVs in Tokyo, Japan December 14, 2021. Photo: Reuters

Toyota Motor Corporation's cars are seen at a briefing on the company's strategies on battery EVs in Tokyo, Japan December 14, 2021. Photo: Reuters

Reuters

More

Read more

;

Photos

VIDEOS

‘Taste of Australia’ gala dinner held in Ho Chi Minh City after 2-year hiatus

Taste of Australia Gala Reception has returned to the Park Hyatt Hotel in Ho Chi Minh City's District 1 after a two-year hiatus due to the COVID-19 pandemic

Vietnamese woman gives unconditional love to hundreds of adopted children

Despite her own immense hardship, she has taken in and cared for hundreds of orphans over the past three decades.

Vietnam’s Mekong Delta celebrates spring with ‘hat boi’ performances

The art form is so popular that it attracts people from all ages in the Mekong Delta

Vietnamese youngster travels back in time with clay miniatures

Each work is a scene caught by Dung and kept in his memories through his journeys across Vietnam

Latest news