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Toyota is planning to have battery EVs account for sales of its luxury brand Lexus in certain locations.
Japanese automotive company Toyota (NYSE: TM) is heavily investing in battery-powered EVs and will release 30 models by 2030. Toyota revealed plans to infuse 4 trillion yen ($35 billion) to develop a full lineup of 30 battery-powered electric cars. According to the automotive company’s CEO Akio Toyoda, Toyota is also looking at a surge in global sales. The Japanese company is targeting an upgrade in global sales of battery EVs by 3.5 million a year over the next ten years.
At the moment, most of the EVs sold by Toyota are hybrid electric cars. They are backed by a combination of an internal combustion engine and battery-operated electric motors. Battery-backed EVs are also a fraction of the company’s entire sales. Now, Toyota plans to up its new investments into battery technologies by 500 billion yen ($4.4 billion) to 2 trillion yen. The new investments will be part of the automotive company’s broader funding into battery EVs. Also, it would include both capital expenditure, research, and development.
Toyota Invests in Battery-Backed EVs
In addition, Toyota will be investing a separate 4 trillion yen in other types of EVs. The other EVs include hybrid cars, plug-in hybrids, and fuel-cell EVs, which utilize hydrogen as a source of power. Furthermore, Toyota is planning to have battery EVs account for sales of its luxury brand Lexus in certain locations. Specifically, the battery EV will be available in China, Europe, and North America by 2030. After then, it will spread globally by 2035.
While speaking during a briefing on Toyota’s battery EVs strategies, the CEO spoke about the need for evolution. Noting that we are in a “diversified and unchartered era,” Toyoda said it is important to “flexibly change the types and quantities of products produced, while keeping an eye on the market trends.”
“We believe that quickly adapting to changes in the future is more important than trying to predict the future, which is nothing but uncertain. We want to keep options available for our customers until the right path is known.”
Although Toyota is one of the pioneers of hybrid models, the company is lagging in its push towards battery-only EVs. On the other hand, its global competitors like Ford (NYSE: F) and General Motors (NYSE: GM) have taken significant steps in rolling out their battery-powered EVs.
Toyota has declared intention not to be an EV maker. Rather, the automaker prefers to be a carbon-neutral business. At the UN climate conference in Scotland last month, Toyota refused to be a part of a group of six major auto companies to sign a declaration to phase out fossil-fuel cars by 2040.
At press time, Toyota stock is up 0.30% to $176.70.