Toyota Motor Corp is changing its electric vehicle (EV) strategy to compete with industry leaders Tesla and BYD. Toyota will reportedly brief key suppliers on its electric vehicle strategy changes in early 2022. The company aims to narrow the gap between its EVs and those sold by Tesla and BYD.
The changes under review are said to be part of Toyota’s efforts to better compete with industry leaders in the EV sector. A Study by the S&P Global Mobility discovered that Tesla is receiving a lot of new customers from Toyota and Honda. The Japanese automaker has been slow to enter the EV market, and these changes would help it catch up with its rivals and better serve its customers.
Toyota plans to meet with a few of its major suppliers in February and reveal changes to its EV strategy through early 2026. The new strategy includes speeding up the development of performance-boosting technologies from electric drive systems and motors to tech related to battery storage systems and heating/cooling systems, reported Reuters.
Toyota’s changes to its EV strategy will affect ongoing EV development programs. The legacy automaker’s new EV strategy will first focus on the bZ4X and the Lexus RZ, launching in Toyota’s major markets. The Japanese carmaker hopes the bZ4X and the Lexus RZ will bridge the gap between the cost and performance of Tesla cars.
In October, Toyota was considering a major overhaul of its electric vehicle strategy to better compete in the rapidly growing EV market. The company had suspended work on some of its 30 EV projects as it considered options. The expected changes would lead to a significant shift for Toyota and might involve revising its $38 billion EV rollout plan.