Toyota leasing unit warns of ‘unprecedented’ challenge to boost electric vehicle sales

A senior executive at a Toyota rental subsidiary has warned that the world’s largest carmaker is facing an “unprecedented” challenge to revive electric vehicle sales. because the risk of falling short of its already low target in Japan for the second year in a row.

The bleak outlook for bZ4X, Toyota’s first mass-produced all-electric vehicle that was recalled weeks after its May debut, comes as people close to the Japanese corporation say that they are rethinking their launch plans. battery powered vehicle.

Unlike rivals that focus solely on electric vehicles, Toyota is relying on growth from hybrid vehicles – with both petrol and electric power – as well as hydrogen-powered vehicles. The company argues that not every country can provide electric vehicles due to electricity and affordability constraints.

Toyota is under increasing pressure from investors to hone its EV strategy, with the bZ4X’s failed launch raising concerns that the automaker is falling behind its rivals. competitor. Toyota resumed production of the bZ4X in October, after addressing bolt-related issues that could cause wheels to fall out.

“This is the first time in Toyota’s history that a recall occurred shortly after the product was launched, bringing production and sales to a standstill for several months,” said Shinya Kotera, president of Toyota Motor Corp. Kinto, a rental subsidiary of Toyota, specializes in the exclusive distribution of this model in Japan.

“Toyota is in an unprecedented predicament, and the recall has thrown [the bZ4X launch] lost my way,” Kotera said in an interview at the Kinto office in Tokyo.

Kotera said Kinto will fall short of Toyota’s annual sales target of 5,000 bZ4X units in its home market “in the first year as well as next year”. The rental unit was forced to halve the one-time fee for orders to 385,000 yen ($2,900) in an attempt to boost sales. As well as Japan, the car is available in the US, China and Europe.

The lackluster domestic demand comes as Toyota rethinks its electric car production process to make it more cost-effective. A new team was formed last year led by Shigeki Terashi, a former chief technology officer, according to two people close to the company.

Seiji Sugiura, a senior analyst at Tokai Research Institute Tokyo, said: “Toyota may be re-evaluating the car-making process from scratch, such as how to assemble the supply chain for electric vehicles and decide which part should be outsourced or manufactured in-house”.

Reducing costs has been Toyota’s strength for decades, but “it’s possible Toyota hasn’t figured out how to reduce costs when it comes to electric vehicles,” added Sugiura.

Toyota declined to comment on the bZ4X’s sales outlook, saying it has no details to share about development projects beyond those already revealed.

In addition to rivals like Tesla and Volkswagen, Toyota also faces competition in electric vehicles from new entrants like Sony. On Wednesday, the entertainment team unveiled a prototype of the new Afeela EV, will be produced with Honda and take advantage of Qualcomm chips.