Toyota CEO Expresses Concerns Over Transition to Electric Vehicles

In Buriram, Thailand, Toyota is a well-known company. Recently, their stock has seen a slight decrease in value.

Akio Toyoda, President of Motor Corp., expressed that he is part of a large group of people in the auto-industry who are questioning if electric vehicles should be the only option for cars in the future.

Mr. Toyoda expressed to reporters in Buriram, a rural community located 190 miles northeast of Bangkok, that those in the auto industry are mostly a quiet majority. He went on to say that this majority is questioning if electric vehicles are the only option, but they feel that it is the trend so they are not vocal about it.

Other major car companies, such as General Motors Co., Ford Motor Co. and Honda Motor Co., have announced dates for when their entire lineups will be electric vehicles (EVs). In contrast, Toyota has chosen to invest in a variety of vehicles, including hydrogen-powered cars and hybrids, which use a combination of batteries and gas engines.

The largest car manufacturer in the world has declared that hybrids, a technology they pioneered, are a viable option while electric vehicles remain costly and charging stations are still being constructed in many regions. Additionally, they are creating zero-emission vehicles powered by hydrogen.

On Wednesday, Toyota announced a partnership with Charoen Pokphand Group of Thailand to create hydrogen fuel and introduce delivery trucks that run on the fuel to the Thai conglomerate's fleet.

Mr. Toyoda, who was in Thailand to celebrate the 60th anniversary of Toyota's business in the country, stated that due to the fact that the correct answer is still uncertain, we should not restrict ourselves to a single choice. He has been attempting to communicate this idea to industry participants, including government representatives, over the past few years, which he admitted can be exhausting.

As governments are increasingly providing incentives and requiring the sale of electric vehicles, car manufacturers have been pushed to compete for EV sales goals, according to Mr. Toyoda. He believes that hybrids, which can reduce emissions in the present, should be promoted more than setting targets for EVs that may or may not be achieved in the future. He stated that it is important to focus on what can be done now.

The wariness expressed by Mr. Toyoda regarding electric vehicles has caused some apprehension among investors and customers that Toyota may be lagging behind in the EV competition. Compared to its competitors, the auto maker has been slower to introduce fully electric models in major markets like the U.S., with its bZ4X electric sports-utility vehicle being recalled earlier this year due to a potential safety issue.

Mr. Toyoda declared that Toyota was taking all types of vehicles seriously, including electric vehicles (EVs). The auto maker announced in late 2021 that it was planning to invest up to $35 billion in its EV lineup by 2030. Subsequently, Toyota revealed substantial investments in EV production capacity in the United States.

In August, Mr. Toyoda took part in the World Rally Championship in Belgium with a hydrogen-powered vehicle. He noted that there seemed to be a more positive attitude towards alternatives to electric vehicles from government officials, members of the media, and other people in the automotive industry.

Mr. Toyoda remarked that two years prior, he was the only one voicing these kinds of opinions.