You can’t homogenise the world’s transport needs - that’s the message from Toyota, one of the world’s largest automakers, selling vehicles in every corner of the planet.
While a pioneer in hybrid technology, Toyota has been accused of being a laggard when it comes to all-electric models, and even hybrids with plugs.
Yet, as the auto giant revealed a fleet of new EV models, its senior executives were eager to underline how a global leader needs to think regionally and retain a portfolio of power options.
While committed to a global target of being carbon neutral by 2050, Matt Harrison, chief corporate officer of Toyota Motor Europe, said you have to consider the different disposable incomes, the different needs and different tastes of people in Asia compared to Africa, and South America compared to Europe.
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It seems a sensible attitude, when you consider that Toyota’s vehicles are as likely to be spotted in the Congo or the Khyber Pass as in Copenhagen or Castlebar.
It’s about respecting regional consumer needs, said Harrison. “The consumers definitely don’t say one size fits all,” he told The Irish Times. “Even in Europe, it’s not a one-size-fits-all solution, which is why we continue to do what we do with multi pathway.”
For Toyota, that means a mix of mild, regular and plug-in hybrids, plus the rollout of new all-electric models several years after rivals have introduced theirs. The Japanese firm was criticised for being slow to adopt full-electric power in its model range, but fluctuating growth in EV sales in various big European markets have suggested their more conservative approach may have been more commercially sensible.
[ Toyota unveils trio of new all-electric models arriving from this yearOpens in new window ]
And amid the wider geopolitical turmoil, Toyota executives seem to value sticking to a long-term strategic plan.
Last week, European Commission president Ursula von der Leyen announced a three-year extension for automakers to comply with the EU’s new CO2 emission targets, now spanning 2025 to 2027 instead of the initially planned single year.
This adjustment requires car manufacturers to ensure that at least 20 per cent of their sales are electric vehicles (EVs) during this period to avoid substantial fines, aligning with the EU’s objective of achieving zero emissions by 2035. While some industry leaders welcomed the extended timeline, others expressed concerns that it might delay necessary environmental progress.
With uncertainty over tariffs and their impact on global trade, along with changes to EU emissions penalties, Harrison denied that the environmental agenda is now taking a back seat.
“No, I don’t think so. In reality the 2035 targets aren’t changing. Nor are the 2030 targets. Even the 2025 aren’t changing, the timeline is being amended.”
Harrison said: “There are many reasons why there is a gap between what the regulators assumed would be feasible by this point in time and where a real level of customer demand is, and they needed to do something to protect the auto industry from huge penalties.”
[ Was Toyota’s bet on hybrid cars right all along?Opens in new window ]
He said the changes highlight why Toyota’s strategy isn’t set by outside agendas such as the EU’s emissions action plan. “Together with our partners, we are focused on delivery of our commitments.”
Harrison’s message is backed up by Gerald Killmann, who heads Toyota’s research and development activities in terms of electronics and software in Europe. The Austrian engineer accepts that Toyota’s transition to electric has been slower than that of its rivals.
“Toyota is not a company that jumps from black to white,” he said. “We’re doing slower transitions. Admittedly, it means we were maybe sometimes not the first to market, but our target is customer satisfaction, quality, and we believe in the long term that is good for the customer, that is good for society and will be good for us as a company as well.”
