Japanese firm Toyota Motor Corporation has said that it has plans to launch ten new EV models by 2026. To implement this plan, the firm has announced its strategy and aims at reaching global annual sales of 1.5 million and hopes to catch up with current industry leaders in the EV market, Tesla and BYD.
After dealing with engine vehicles for years, the Japanese auto supply chain will undergo structural transformation as Toyota shifts to electric vehicles. The number of parts required for EVs is expected to be 30% to 40% lower than that of gasoline-engine vehicles.
Toyota ranks 28th in global sales for EVs in 2022, with a share of just 0.3% despite its current global sales forecast for 2022 of 9.56 million vehicles for the Toyota brand and the premium Lexus brand. The firm has a target to achieve an annual production of 200,000 EVs in the United States after 2026. Further, it aims to produce around 20% EVs of the total vehicles produced in the United States.
The firm needs to match up its pace with the market as Toyota will be launching a new generation of EVs only after 2025, that will be more than three years after its competitors. The new EVs will focus on improving battery efficiency and double the cruising range. However, Toyota need to hasten in order to meet its ambitious goals.
This shift will have a significant implications for Japan’s domestic auto industry. With Toyota leading the way, the number of parts required for electric vehicles is expected to be reduced by 30% to 40% compared to the roughly 30,000 parts required for gasoline-engine vehicles. However, as per reports, this might affect the job market if 90% of the 680,000 auto part-related jobs switch over to the production of EVs, around 80,000 jobs could be lost.