Toyota looking for Faster Profits with Full-Electric Vehicles

Samuel Oskys10/08/20193min
Toyota has been doing well in the last few years by reaching its targets of making up 50% of their sales from their hybrid models. Now they plan to focus on offering full-electric vehicles.

The question is, will full-electric vehicles be profitable faster than the hybrid technology since that took 4 generations to reach a sustainable profit?

The automotive industry, in general, is moving fast with new technologies coming to the forefront each year. It’s counting on being able to do things faster, so taking 2 decades for full-electric to be profitable, would raise much concern. This is where scale plays an important role, and of course how quickly you can add renewable energy capacities in place and how you can make it affordable and convenient. Toyota’s hybrid model isn’t the best example because they didn’t have an infrastructure to worry about. The BEVs (battery electric vehicles) had incredible battery density and were affordable. But if the consumer is not offered the infrastructure needed to refuel quickly without inconveniences, then deliver goes out the window.

Economies of scale need to be considered in the automotive industry and like many other car manufacturers, Toyota assembles some components in Europe. Also, a large part of their development has been concentrated into reducing Neodymium, a rare earth metal, which had an effect on cost reduction.

Hybrid vs Non-Hybrid Sportscar

It can be said that Hybrid is Toyota’s top sale and brand positioner but the Supra has presented itself to the industry after 17 years. The new Supra is a non-hybrid sports car and it doesn’t focus on profit or low CO2 emissions. The Supra has always been about the emotional drive it generates on the driver.

Toyota is a powerhouse when it comes to hybrids but as a manufacturer, they have not forgotten or given up on their dreams of having high-performance products such as the Supra.

The GR Supra is the top of the line performance vehicle in the Toyota range and the GR which stands for Gazoo Racing is a brand which Toyota is trying to establish in all their core models. Some hybrid models will have a GR grade, representing the “higher spec” of that model vehicle. Truth be said, the first-gen Prius’ were uninspiring from a driver experience perspective so Toyota invested in core hybrid models to make them the best-looking product in that range.

Toyota is looking into the future and their goals need to match the consumer’s needs. Hybrid and full-electric is the future of automobiles and with their eyes set on full-electric for the next decade, Toyota should reach sustainable profit in less time than it did with hybrids.

Samuel Oskys

Sam Oskys is a British born technology enthusiast, automotive lover, artist, author and editor. His inspiration has been his life experiences; his evolution and adaptation in society and life itself and as a result, translated these emotions into art and words within his work in this duration. Writing about trendy, technology, automotive and lifestyle-related material is what he mainly focuses on and he’s currently one of the authors for High Worth Citizen. Contact Sam at +357-22029786 ext: 6115 or by email at [email protected] for editorial related questions.

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