Toyota will continue to disperse between hybrid, electric, hydrogen and e-fuel


The Toyota group has once again confirmed that it will not put all its eggs in one basket in terms of energy. But can it continue to progress on hybrid, hydrogen and electric without risking missing out? It’s a bet that seems more complicated than it seems.

During his last speech last February, the new boss of Toyota, Koji Sato, had recognized errors in past communication, in relation to electric cars. He was therefore particularly expected on the issue of the group’s electrification projects for the conference on April 7. Finally, nothing really seems to move: the Toyota group confirms that it will continue to work as much on hybrid (HEV), rechargeable hybrid (PHEV), electric (BEV), hydrogen (H2 and FCEV) , but also carbon neutral fuels (CN fuel). Suffice to say that the brand continues to disperse while many other manufacturers are now focusing on a 100% electric future.

Toyota’s strategy still targets carbon neutrality objectives. But to develop on so many different technologies, it seems difficult to succeed in being good everywhere. Toyota is well aware that it must change its strategy on 100% electric vehicles and has shared some of the planned changes.

10 new models, a new platform and better batteries

The e-TNGA platform operated today by Toyota, for the BZ4X or the Lexus RZ450e, is not really the best technological solution. The models are developed on a modular platform, which adapts as much to thermal and hybrid vehicles as to electric ones. However, the best electric vehicles are generally those developed on dedicated platforms. In any case, this is what almost all traditional manufacturers now do. The first two models offered by the Toyota group are not bad, but they are well below many of their competitors, including Chinese.

Toyota’s future BEV // Source: Toyota conference capture

The words of the Vice-President, Hiroki Nakajima, seem to confirm this: “ We will expand our current range by launching ten new models by 2026, which would represent 1.5 million vehicles sold per year “, before adding ” we also plan to market new generation BEVs, totally different from those of today. »

Rather than multiplying the models on this platform, the brand already seems to prefer to focus on the next generation of its platform for developed countries. Some improvements to the bZ range and new versions could appear, even if the brand has not confirmed anything for Europe. On the other hand, Toyota still announced a new SUV with 6/7 seats for the American market, and 2 models in addition to bZ4X and bZ3 on the Chinese market.

At the heart of Toyota’s concerns is also the subject of batteries. The group is betting a lot on a new generation of much more efficient batteries for 2026: “ This new generation of BEV will double the range using much more efficient batteries, while delivering design and driving performance that will make hearts beat faster. »

Toyota will take inspiration from Tesla to lower its manufacturing costs

Toyota has understood that one of the advantages of electric is based on a simplification of manufacturing processes. Toyota was most likely inspired by Tesla in this matter, after dissecting a Model Y.

Lower development and production costs // Source: Capture conference Toyota
Lower development and production costs // Source: Capture conference Toyota

The manufacturer hopes to cut its development and production costs by half. But this cost reduction can only exist with large volumes. However, Reuters recalls that Toyota sold only 25,000 electric cars in 2022 worldwide with its first model. This seems like a giant step towards reaching the set targets of 1.5 million electric cars produced by 2026.

Hybrid, hydrogen and e-fuel innovations

In addition to all the work to be done to bring its electric cars up to standard, the Toyota group continues to innovate on hybrid and hydrogen.

Hydrogen-related innovations mainly concern road transport vehicles, such as trucks, which the brand wants to equip with a fuel cell (FCEV technology). For Toyota, hydrogen is much more practical for filling a tank quickly and lighter – weight of batteries vs hydrogen tank – for the total mass of a vehicle. The brand just omits that production, performance and infrastructure are particularly controversial topics. And that hydrogen is not developing as quickly in other developed countries (America and Europe) as in Japan.

Toyota is betting on the FCEV for trucks // Source: Toyota conference capture
Toyota is betting on the FCEV for trucks // Source: Toyota conference capture

The Toyota group continues to promote the hybrid with force. Vice-President Hiroki Nakajima even opposes PHEV hybrids to 100% electric cars (BEV): “ By increasing the battery efficiency of plug-in hybrids to extend the range in EV mode beyond 200 km, we will reposition plug-in hybrid vehicles as “practical BEVs” and work more intensively on their development as other BEV option. »

With the plug-in hybrid vehicle (PHEV) market already starting to decline in Europe, one wonders if Toyota is betting on the right horse. Plug-in hybrids are expensive and require a plug to plug in, even more regularly than an electric vehicle, to get the real benefit. Customers now seem to be hesitating between classic hybrid or electric.

Toyota remains multi-energy // Source: Toyota conference capture
Toyota remains multi-energy // Source: Toyota conference capture

Toyota will also continue to develop its hybrid (non-rechargeable) engines. The position of the brand on this subject does not really evolve. The argument is always to offer models with “high quality and affordable prices” thanks to hybrid engines despite the upcoming ban on these engines in Europe. Hiroki Nakajima pulled out a new wild card from his deck when he broached the subject of carbon neutral fuels associated with hybrid engines: “ we are also committed to becoming carbon neutral by providing fuel options not only for new vehicles, but also for vehicles already on the market that are up to 20 times more fuel efficient than new vehicles. »

Carbon neutral fuels are already being tested in competition cars and other local initiatives in Japan and Thailand. Be careful though, behind the name “CN Fuel” (Carbon Neutral fuel) used by Toyota, the group also speaks of fuels from biomass, therefore biofuels. These do not a priori fall within the spectrum of European agreements on the possible authorization after 2035 of e-fuel developed from hydrogen. A subject that we will probably have the opportunity to develop later.

Toyota continues to innovate in all areas. Some would say it’s the best way to avoid taking risks, but the reverse is also true. Will Toyota be able to continue to remain in the world’s largest manufacturers in the coming years? Nothing is less certain with the rapid electrification of the Chinese, American and European market.

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