Toyota is considering reviewing its EV car strategy in order to better compete in a rapidly growing market and drive down costs for EV technology (with unnamed execs acknowledging that Tesla was leading the way in this regard).
From what I can glean, the announcement amounts to a proposal to:
- Suspend work on current EV projects
- Slow the rollout of EVs in pipeline
- Focus on the core EV manufacturing process and technology to drive efficiencies (potential investment?)
This makes sense given the ground that has been lost to other manufacturers (e.g. Tesla). It feels like Toyota is a long way behind its competitors in terms of EV, but by refocusing their plans they can invest their efforts (and capital) on the technology and processes which will have the greatest impact.
The review falls short of an acknowledgment that the Toyota EV strategy was wrong, but this pivot shows just how much progress EV manufacturers, and in particular Tesla, have made in terms of technology, innovation and know-how, in recent years.
The proposals under review, if adopted, would amount to a dramatic shift for Toyota and rewrite the $38-billion EV rollout plan the Japanese automaker announced last year to better compete with the likes of Tesla.