Toyota acknowledges Tesla’s EV success, strategy pivot likely

Toyota is likely to pivot its EV strategy with an eye on competing with electric specialist Tesla over the next decade.

The Japanese carmaker is the largest in the world, and although the Prius hybrid was once a must-have enviro accessory, Toyota has been somewhat left behind in the transition to BEVs.

In December 2021, Toyota outlined a US$38 billion plan to roll out 30 new EVs over the next decade, but according to a Reuters report, the plans have been put on ice.

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Specifically, the construction of the Compact Cruiser concept and battery-powered Crown are understood to be on hold.

The report also suggested that Toyota’s e-TNGA platform wouldn’t allow the brand to compete on a level playing field with Tesla.

Not so much in battery or range terms, rather Toyota is most concerned about how it will make its electric vehicles profitable.

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What’s causing Toyota’s rethink?

The Reuters report doesn’t name the sources from within Toyota, only noting that they’re working under Shigeki Terashi, appointed Executive Fellow in 2021, on the review process dubbed the business revolution (BR) team.

Toyota’s problem is that the current e-TNGA platform, that was going to underpin the brand future EVs, is designed in a way that it can be built in parallel with combustion-engined vehicles.

The issue, according to the sources, is the introduction of inefficiencies compared to a pure battery-electric production line.

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Another potential problem is that e-TNGA is only capable of supporting a 400-volt electric system, limiting fast-charging in the case of the BZ4x to 150kW (DC).

This means slower rejuicing than Tesla’s Model 3 and Model Y (250kW), Hyundai Ioniq 5 (circa-230kW) or Porsche Taycan (270kW).

There is the potential that the e-TNGA platform could be reworked to integrate the latest technologies.

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But, there’s also the possibility e-TNGA could be axed within the next five years to make way for a new, bespoke EV platform.

Tesla and Toyota have collaborated before, with Toyota buying a stake in the American company in 2014, before selling up in 2017 – “they concluded back then there wasn’t much to learn”, said one of the Reuters sources.

Toyota announced details of its first BEV, the BZ4x in October 2021, though production delays and issues – including wheels falling off – made for a rocky start-of-sales. The BZ4x is likely to go on sale in Australia some time next year.