If you’ve been waiting for a smaller, more affordable Toyota electric vehicle, you’ll need to stay put. Toyota has no immediate plans to introduce a budget-friendly electric vehicle (EV), regardless of growing demand for such vehicles.
Toyota reveals there’s no immediate plan to develop a budget-friendly, compact electric vehicle.
While some carmakers, including VW, Stellantis, and Kia, have announced intentions to release affordable electric vehicles priced under $30,000 (approximately £25,000), Toyota is not yet on board with this strategy.
Toyota’s European product improvement chief, Andrea Carlucci, warns that high battery prices render a budget-friendly electric vehicle unlikely.
Toyota’s CEO Carlucci explains that there’s a “premium attached to electric vehicles” and notes that a “substantial shift in the price of batteries” is needed before the company can offer affordable EVs at scale.
Carlucci noted that Toyota cannot currently achieve that level of performance, adding that the City Crossover will be the most affordable electric vehicle (EV) on the market in the near term.
Toyota unveils near-production concept for its upcoming 2023 electric SUV, dubbed City.
Supplied with two battery options for your convenience. The base model mannequin starts at around $40,400 (approximately £32,000).
While Carlucci’s plans for a budget-friendly Toyota EV are intriguing, it appears that such a release is unlikely in the near future. “I’m not ruling out the possibility of a proposal; I’m merely noting where the market stands at present.”
Toyota’s European chief of product development revealed that the supply of affordable electric vehicles currently available is constrained, with manufacturers prioritizing profit over performance in their offerings. Carlucci has also teased the possibility of an electric Toyota Yaris variant in the near future.
Electrek’s Take
Toyota’s shift away from compact, affordable electric vehicles raises intriguing questions about its future in the competitive market. Toyota is most widely recognized for its iconic Prius hybrid.
Will Toyota overlook an opportunity to build a model based on smaller, more affordable vehicles? As Volkswagen prepares to unveil its ID 2all electric vehicle, starting at around $27,000 (€25,000), Toyota may risk ceding market share as the industry shifts towards electrification.
The automaker claims to be introducing innovative EV batteries offering enhanced range and accelerated charging capabilities at a reduced cost. Despite initial projections, these launches are not expected until at least 2026.
By that time, Toyota may further fall behind. Toyota, along with its luxury brand Lexus, sold approximately 9.4 million vehicles worldwide in the past year. Only about 1% of the total 95K units sold are electric vehicles (EVs).
Compared to others, Volkswagen offered over 394,000 electric vehicles in the previous year alone. This translates to approximately nine percent of total revenue. As various automakers, including Hyundai, BMW, Mercedes, and Volvo, continue to gain traction in the electric vehicle market, their combined sales figures have reached double digits.
