Japanese car maker Toyota Motor Corp (ADR)(NYSE:TM) has announced that all its cars will be electric or at least have an electric option by the year 2025. Toyota has also set one million fuel-cell and battery vehicles as the annual sales target by the year 2030. The carmaker will invest more than $13 billion in the development and manufacture of batteries in order to attain this goal.
“As a mass-market automaker we need to expand our offering of electric cars,” said Shigeki Terashi, Toyota’s Executive Vice President, during a briefing held in Tokyo earlier in the week.
Battery development pace
The second-biggest automaker in the world by sales after Germany’s Volkswagen AG, also said that the battery development pace would need to be accelerated due to the fact that the tightening of vehicle emission regulations globally would make it necessary for manufacturing capacity of powerful batteries to be increased.
Initially the pure-battery Toyota models would be introduced in China before being launched in Japan and India. Europe and the United States would follow thereafter. According to industry experts, all-battery electric vehicles and hybrids will constitute around 26% of worldwide car sales by the year 2030. Last year these kinds of vehicles comprised about 1% of all sales per data obtained from the IEA – International Energy Agency.
Since 2016 when it revealed that pure battery vehicles would be added to the product line-up Toyota has ramped up efforts in the development of electric vehicles. This has been met by surprise among industry players as the car maker had for a long time focused primarily on fuel-cell vehicles and plug-in hybrids.
By the year 2030 Toyota expects electric vehicles to comprise about 50% of its worldwide sales. Then Toyota aim to be selling approximately 4.5 million plug-in and petrol-electric cars yearly. Volkswagen on the other hand has a goal of selling between two and three million electric vehicles by 2025.
A few days ago Toyota revealed that it had partnered with Panasonic to develop the next-generation electric batteries and this would include solid state batteries.
On Monday shares of Toyota Motor Corp rose by 2.30% to close the day at $127.32.