Toyota, the pioneer in creating the hybrid car trend in the early 2000s, is ready to reclaim its “green car king” title.
As the demand for battery-powered electric cars decreases and more people choose to buy hybrid cars, Toyota has become the most suitable option to meet their needs in the transition to electric vehicles.
In recent years, Toyota has been seen as lagging behind in electric cars compared to other companies in the industry. They have even only released one electric car model in the US and it was not well-received (one even had a wheel falling off in the literal sense).
However, the Japanese automaker now tops the list of the most considered electric car brands in a recent study, beating Tesla and Ford. It seems that Toyota’s hybrid-focused approach is appealing to those who want to buy electric cars – those who appear to be more budget-conscious and practical than those who came before them.
“Toyota has talked more about the bridge – where we transition from internal combustion engines to pure electric engines,” Jeremy Korst, President of GBK, a consultancy, told Business Insider.
President Akio Toyoda has long been skeptical of the industry’s over-enthusiasm for battery-powered electric cars. Instead, he always talks about the importance of Toyota’s “multi-pronged approach”, in which the manufacturer researches and develops multiple alternatives for internal combustion engines.
Toyota also dismisses claims that electric motors will dominate the entire automotive industry. Recently, he predicted that “no matter how far BEVs progress, these cars will eventually only capture a maximum of 30% of the global market share.”
The world owes Toyota an apology
Toyota’s competitors, especially from the US, have poured billions of dollars into new electric car lines and promised a not-so-distant future – where all cars on the market run on electricity. This, along with Tesla’s success and investor enthusiasm for electric cars, made Toyota look like a laggard.
Despite years of criticism, Toyota seems to have had the right idea.
According to Cox Automotive, hybrid car sales increased much faster than electric car sales last year – up 65% to over 1.2 million vehicles. According to Cox, while the growth rate of electric vehicles was only 46%. Hybrid car buyers also have more spending power.
Companies like Ford and GM, which are relying on high-end, high-priced electric cars to make profits, will have to reconsider this year as the structure of the electric car market changes.
In a move that reflects Toyota’s commitment to hybrid cars, GM recently returned to its hybrid car plans in North America. CEO Mary Barra told investors that the company will offer some hybrid car options in North America this year.
Toyota has spent the past few years releasing more hybrid and plug-in hybrid models, while still retaining hydrogen fuel cell technology, while most competitors have given up.
At this point, this seems to be the most sensible strategy.
