With its first leadership change in about 14 years, Toyota will accelerate its electrification efforts by launching a new special unit to develop next-generation battery electric vehicles, the company said Friday.
Amid intensifying global EV competition, Toyota’s new management team also said the world’s largest automaker aims to roll out 10 new battery EV models by 2026 and ramp up sales to 1.5 million that year, compared with about 24,000 worldwide last year.
“We will be drastically changing the structure of the vehicle and manufacturing process for the next-generation EV. It’s the new world of battery EV,” said Hiroki Nakajima, executive vice president at Toyota, during a news conference in Tokyo.
To do that, “we are creating the new special unit to cut various (existing or traditional) constraints to undertake new challenges,” Nakajima said.
Toyota plans to officially launch the new body in May.
Since the new unit will be in charge of pretty much everything regarding the development, production and business model of the new EVs, its leader will have full authority to make decisions, Nakajima said.
As for next-generation EVs, the cruising range per charge will be increased twofold by improving battery efficiency, Nakajima said. They will also be equipped with a new software operating system that will allow drivers to customize driving functions.
The number of steps needed in the manufacturing process for such cutting-edge vehicles will be halved as well.
Toyota had already unveiled its EV sales target for 2030 with 3.5 million unit sales globally.
Although Toyota is set to boost its EV strategy, the automaker will also be promoting other options, such as plug-in hybrids and fuel-cell vehicles (FCVs). Toyota said it plans on mass producing FCVs focusing on commercial vehicles.
The news conference was also attended by new Toyota chief Koji Sato, who vowed to transform Toyota into a “mobility company” amid an industry paradigm shift driven by electrification, autonomous driving and connected vehicle technologies.
Toyota will look into more cross-industry partnerships to avoid the automaker falling into a “closed-industry loop,” Sato said.
Sato, a former Lexus chief, stepped into the role of Toyota CEO from April 1, after his predecessor Akio Toyoda stepped down following about 14 years as leader.
The new Toyota chief said the main theme of the new management team is “succession and evolution,” saying that it will carry on Toyota’s philosophy of continuing to make better cars while promoting changes to get ahead of the curve.
Sato also mentioned that “the top priority for the new team is to speed up management” to increase opportunities for employees working on the front-line to face new challenges and facilitate innovation.
Competition in the auto industry is expected to intensify, with existing carmakers having to come up with strategies that will likely require fresh ideas and a think-outside-the-box mindset.
When announcing the leadership change in January, Toyoda, who is now the chairman, said he felt that someone from the younger generation should lead Toyota to face new challenges and competition, saying he himself is from “the old school.”
Toyoda said that he had chosen Sato as new CEO for his eagerness to absorb Toyota’s philosophy and understand its technology.
“The mission of the new team is to fully change Toyota into a mobility company. I believe the new management team will be able to do what I was unable to do,” Toyoda said in a news conference in January.
As part of the leadership overhaul, Takeshi Uchiyamada also stepped down from his position as chairman.
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