Toyota plans to triple electric vehicle production in 2025 compared to its 2024 plan as the automaker ramps up its electrification efforts to catch up with rivals such as Tesla Inc and BYD.
The automaker told its major suppliers that it plans to increase production of electric vehicles under its Toyota and Lexus brands to 600,000 vehicles by 2025. The production target for 2024 was 190,000 vehicles. Toyota sold 24,000 electric cars in 2022.
Toyota's 2023 production target for all vehicles is more than 10 million vehicles, including about 150,000 electric vehicles. The company aims to produce 11 million cars by 2025, which means electric cars will make up 5-6% of all cars.
An official at the spare parts manufacturing company expects Toyota's sales of electric cars to reach about 800,000 units in 2025.
Toyota will launch a new electric Hilux model in Thailand early this year, followed by an electric SUV in China and the United States next year. The electric Lexus ES model is scheduled to be launched in Japan in 2025.
The company is also developing electric versions of small commercial vehicles in cooperation with Suzuki and Daihatsu. The automaker produces electric vehicles at two main plants in Toyota City, Aichi Prefecture, and a Lexus plant in Fukuoka Prefecture on Kyushu Island.
The company plans to launch an electric vehicle battery production plant in the United States in 2025. Toyota is also installing battery production lines at two plants in Aichi Prefecture. Battery manufacturer Prime Planet Energy & Solutions is ramping up production.
Toyota also sources cells from China's leading battery maker CATL and China's leading electric vehicle maker BYD. In addition, purchase negotiations are underway with South Korea's LG Energy Solution.
Toyota plans to launch its next generation electric vehicle platform, starting with the Lexus model expected to be launched in 2026. The company uses GigaCasting technology equipment to form aluminum into body parts, saving time, money and labor.
Toyota plans to sell 3.5 million electric vehicles by 2030, including 1.7 million on new platforms.
The company's overall strategy is to evaluate all energy sources, including gasoline and hybrid vehicles, rather than betting its future on electric cars only.