Toyota is reportedly considering an electric vehicle (EV) development strategy similar to Tesla and BYD. The Japanese automaker is one of many hoping to compete with Tesla in terms of EV profitability.
According to a Barron’s report, Toyota will unveil its new strategy in 2026, which will include supplier changes. This latest announcement comes in response to criticism of Toyota’s slow EV rollout.
Toyota will modify its supply chain to compete with Tesla. It is worth noting, however, that Tesla only sells battery-electric vehicles, as opposed to most automakers that sell gas vehicles.
The War on EVs Continues
Despite the abrupt shift in strategy, the Japanese automaker is sceptical of the auto industry’s pursuit of EVs.
During a conference in Thailand, Toyota CEO President Akio Toyoda stated that he is among the auto industry’s silent majority questioning the fate of electric vehicles (EVs).
He claimed that many automakers are questioning whether EVs should be pursued solely, reflecting growing scepticism about automakers’ ability to transition.
Due to high demand for the few models that are currently available, automakers are betting big on fully electric vehicles.
Still, challenges are mounting, particularly in securing parts and raw materials for batteries, while some automakers are concerned about buyers’ speed of adoption, particularly in light of this year’s EV price increases.
Toyota stated:
People involved in the auto industry are largely a silent majority. That silent majority is wondering whether EVs are really OK to have as a single option. But they think it’s the trend so they can’t speak out loudly.
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