A Sign That Toyota Is Not Ready To Go Electric
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The electric car revolution is already ramping up, with more and more major car manufacturers making green changes to their lineups. While many countries and states want to move to a more sustainable future, for consumers, one of the main obstacles for switching to electric cars is cost.
Electric car owners might also have to pay more for car insurance overall even though there are discounts with some companies for driving a green vehicle. Countries need to have good charging infrastructure in place as well as affordable car options to encourage consumers to switch to electric.
However, the President of Toyota, one of the biggest manufacturing companies, isn’t fully on board with eliminating gas engines. He thinks this will reduce Japan’s ability to remain a strong competitor in the auto industry.
Toyota could push the electric car industry further
In terms of overall car sales, Toyota is among the top of the list in America. They made popular hybrid vehicles and could be one of the leaders in the green movement. But, Toyota's President Akio Toyoda, has questioned Japan's goal to phase out internal combustion engines by 2035.
Toyoda is also the head of the Japanese automobile Manufacturers Association. Reuters reports that some investors said, "the carmaker risks falling behind competitors that are rolling out electric vehicles while giving cover for other companies seeking to avoid big changes to meet climate goals."
This shift in Toyota’s stance on climate change comes shortly after the company said they’d review their climate lobbying and aim for carbon neutrality by 2050.
Why is the president of Toyota against banning gas cars?
Toyoda is worried that any policy banning gas-powered cars might limit their options for using new technology. He says that this could "cause Japan to lose its strengths."
It’s true that the energy grid is not yet ready to make the switch to full electrification. This could make manufacturers hesitate to put their full faith in building and selling electric cars. But, energy infrastructure is being prioritized by leading countries like the U.S. that are making plans to end conventional gas car production.
Toyota has yet to release a fully electric vehicle, let alone one that can compete with models from Tesla and Volkswagen. Investors are hoping that Toyota will commit to full electrification of their vehicles in the future.
Toyota’s future electric car plans
However, the automaker does have electric plans in the works. Toyota has released key details about the bZ4X SUV, the first fully electric vehicle for the brand. They also hinted at electrifying their popular truck lineup as demand for electric trucks continues to grow in America.
While the electric range and power of these vehicles are still a mystery, we do know that they have several models in the works. The bZ line, which stands for Beyond Zero, is expected to include seven models. They are currently working on electrifying 70 vehicles in total for the global market by 2025.
The company is working to take part in the electric car market. But, Toyoda’s statements questioning Japan’s plans to ban gas cars have caused criticism and concern from investors.
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