Japanese automaker Toyota plans to launch 10 new electric vehicles by 2026, with a sales target of 1.5 million vehicles per year. Toyota wants to take the lead in the electric vehicle market, where the company has long-lagged rivals.
The world’s largest automaker by sales will also create a dedicated division to focus on next-generation electric vehicles. In a briefing on Friday, company executives detailed plans for its new leadership team.
Toyota and its luxury brand Lexus currently have just three electric vehicles on the market, with global sales of fewer than 25,000 last year.
Investors and environmental groups have criticized Toyota for being too slow in getting into electric vehicles, saying it has lost ground to rivals such as Tesla that have quickly taken over the market.
But Toyota has countered that EVs are only an option for car owners and that for certain markets and drivers, hybrid models such as its groundbreaking Prius are more practical options.
“Over the next few years, we will expand our lineup in the important field of electric vehicles,” Chief Executive Tsuneji Sato announced at his first briefing but added that hybrid models will remain an important pillar.
The market expects electric vehicles to account for more than half of total global vehicle production by 2030.
Meeting that demand will be critical for Toyota, which has also said it will increase production in the United States, where electric vehicles are growing faster than the overall market.
Toyota reported that U.S. sales fell nearly 9 percent in the first quarter. In contrast, GM’s sales rose 18%, which was attributed to greater demand for electric vehicles from corporate fleets and commercial customers.
According to S&P data, the majority of electric vehicle purchases in the United States are Toyota and Honda owners.
“Now that we’re on our way to the next big innovation leap, Toyota is falling behind, and more and more Americans are starting to realize it,” said Ester Peterson-True, a clean-vehicle activist and nonprofit Citizens for Good. Hilo (East Peterson-Trujillo) said in an interview before the briefing.
