Last year, Toyota announced its electric vehicle (EV) adoption strategy. However, new reports indicate that the company may be going back to the drawing board.
According to Reuters, Toyota has formed an internal group to devise strategies for improving its current e-TNGA flexible EV platform or developing a new EV architecture. The e-TNGA platform is already used in the bZ4X crossover SUV and will also underpin the upcoming Lexus RZ 450e in 2023.
While these changes are under consideration, Toyota is pulling the plug on the development of several EV projects, including a compact electric cruiser (inspired by the FJ Cruiser) and the Toyota Crown hybrid sedan.
The previous strategy entailed the introduction of 30 all-electric vehicles by 2030, as well as $17.6 billion in investments in battery technology development and production. However, sources claim that Toyota’s EV development process is too slow and expensive in comparison to other manufacturers.
Reuters highlighted that Toyota co-developed an all-electric version of its popular RAV4 SUV with Tesla in 2012, but its engineers thought the technology posed no threat. It sold its stake in the development to Tesla in 2017 before starting work on its own platform.
Tesla’s Troubles
Tesla Inc. has observed lower-than-anticipated deliveries of electric vehicles (EVs) in the third quarter, citing logistical issues. Analysts stated that Tesla is not impervious to the weakening economy. Dan Ives, an analyst at Wedbush Securities, told Reuters:
The local economy continues to have negative effects on Tesla, primarily logistical. However, I believe there are a few demand issues sprinkled in there. An ominous cloud looms over the auto industry and Tesla is not an exception.
The company itself stated regarding the development that “it is becoming increasingly difficult to secure vehicle transportation capacity at a reasonable cost.”
Ed Moya, a senior market analyst at OANDA forex corporation, stated,
I believe that EVs are in for a bit of a rough patch, as consumers will likely be a bit more hesitant and less eager to purchase something new.
Likewise, several other major automakers have cut production due to supply chain challenges, showing that Toyota is not alone in the ongoing global recession.
