[RahulNagaraj]

According to a media report, a corporate document has leaked online, which explains why Toyota is focusing more on selling hybrid vehicles rather than shifting to EVs and PHEVs like most of its competition.

In the document, Toyota states that sourcing materials for the batteries will increase drastically in the coming years, resulting in an increase in cost and difficulty to get hold of the materials. The automaker has stated that materials once sourced can be used to produce a lot more hybrids at affordable price points compared to EVs and PHEVs.



Toyota also mentions that there is still a long way to go before charging infrastructures in the USA can handle the proliferation of full EVs on the roads. Also, for most Americans, purchasing PHEVs and EVs is expensive compared to their ICE or hybrid counterparts. In recent times, after the Inflation Reduction Act eliminated a large chunk of EV/PHEV vehicles from tax credits, dealers have reported a reduced interest in EVs.

While Toyota still offers EV and PHEV models, the bZ4X being the first of many new-gen pure EV offerings, the company is known to take a cautious approach. Reports state that while the future might be electric, car buyers currently want something in between.

Source: Jalopnik

Link to Team-BHP news

[johannskaria]

Considering the prices of rare earth minerals and the geopolitical situation, the hybrids are here to stay at least for a 10-15 year window.
And even after that BEVs may not be the only solution going forward.

The strategy fits perfectly for the Indian scenario.

[ferrarirules]

Originally Posted by RahulNagaraj

In the document, Toyota states that sourcing materials for the batteries will increase drastically in the coming years, resulting in an increase in cost and difficulty to get hold of the materials. The automaker has stated that materials once sourced can be used to produce a lot more hybrids at affordable price points compared to EVs and PHEVs.

I don't think this is correct, there was an announcement of 10th May about their restructuring of their organization to concentrate on BEVs

So either the conspiracy theorists have old news and Toyota has moved one with their strategy or Toyota are confused and they are doing something in front of the world for appearance sake. I find option 1 to be more plausible.

Link to official Toyota corporate news - https://global.toyota/en/newsroom/co.../39176333.html

Excerpt from the news -

Toyota City, Japan, May 10, 2023―On May 15, Toyota Motor Corporation (TMC) intends to make the following organizational and senior professional/senior management changes.

1. Organizational change

• BEV Factory will be newly established as a dedicated organization to accelerate the development and business of the world's leading "next-generation BEVs that only a carmaker can produce."
• By accelerating collaboration with new partners based on the strength of the hardware we have cultivated through TNGA, we will take on the challenge of producing BEVs that create a completely new world view.

BEV Factory (newly established)

• Under a single leader, the processes of " development, production, and business" are all conducted in one place, enabling speedy decision-making and execution.
• Accelerate agile development through a cross-functional organizational structure integrating with overseas headquarters, Woven by Toyota, and major suppliers.
  • Overseas (North America / China / Europe, etc.)Incorporate customer needs and market trends of the major BEV markets.
  • Woven by ToyotaUnderstand the latest intelligent technologies and develop them together.
  • SuppliersNew ways of manufacturing using the latest technologies and methods.

[rajshenoy]

So the theory of Batteries will only get cheaper with time just goes down the drain

I have no doubt they will get more efficient and reliable, but if there is shortage in supply, it will never become cheaper!! so what happens if we need to replace the batteries after say 7-8 years (worst case scenario) ?

[DarthVeda]

Lots of folks commenting on this is the right strategy and battery tech not improving to reduce cost, haven't been focussed on what's happening in China.
Some bit of news that I recently got from Chinese EV news outlets:
1. Gotion announced battery chemistry of LFP with Manganese to hit energy efficiency of 240wh/kg at cell level and 190wh/kg at pack level. The current LFP cells hit 160wh/kg at cell level and way lower at pack level. This means you can pack more battery for the same amount of weight. This enables 1000km range battery pack.
2. CATL Qlin hits 255wh/kg, though it is NMC chemistry and not LFP.
3. Sodium Ion batteries to hit vehicles in 2nd half of this year, this is way cheaper and does not use Lithium at all.

The underlying point here is that Japan hasn't made any headway into battery chemistry or development and are lagging way behind, these automakers have to rely on, CHINA (gasp!) for their EVs, which is what they are hesitant about and keep pushing hybrid on customers.

[Mustang Sammy]

Couldn’t agree more that this is the way forward for the world, and especially for India.

Link to the detailed explanation by Toyota’s chief scientist Gill Pratt

https://toyotatimes.jp/en/toyota_news/1024.html#index01

[rrsteer]

Originally Posted by DarthVeda

The underlying point here is that Japan hasn't made any headway into battery chemistry or development and are lagging way behind,

Not true at all. Read up about Panasonic and Tesla.

Infact for solid state battery tech - Japan and surprise surprise Toyota - is considered to be the leaders in R&D

[ergon_9700]

My 2 cents on this topic

1. The current cost of battery and upcoming tech advancements are too much until required economies of scale are achieved. Hybrids are perfect proving grounds for this tech IMO.

2. Smaller battery packs means more cars can be made which in turn gives more data about the battery pack behaviour to the company.

[kkunal.shah]

For a country like India, Hybrids seems to be the
logical way forward. Let’s not forget our electricity rates are high & due to supply constraints will only get more expensive.

We should move our public transport to BEV & personal transport to hybrids.

[santhasa]

I have no doubt that the sales of EVs will go up in the coming days. At the moment, the battery technology is not giving a great range unless you invest a lot (like whats happening in the US). In developing countries where its all a volume game, companies like Toyota cannot afford to roll out full fledged EVs given the customer's propensity to look at the price point in the first place. Battery replacement has been a tricky subject (given the high cost of batteries) and none of the car manufacturers are talking much about it these days.

Also, if the EV volumes pick up, the demand for petrol and diesel is bound to come down or stay flat, and that will push their price down. When the situation is unclear on which way the wind is blowing (like EV or Hydrogen fuel cell or something else), its wise to sail on both the boats and thats the Hybrid route. I expect Toyota to carry on with its Hybrid journey for another 2 years before it decides its direction.

[DarthVeda]

Originally Posted by kkunal.shah

Let’s not forget our electricity rates are high & due to supply constraints will only get more expensive..

Really? even at 8rs/unit or 21rs/unit,which is charged by pvt. players, it still works out at 1 to 3 rs/km, Now compare that too petrol and diesel, which hasn't seen any decrease in price for years to come and will never.

Lastly, you do know that you can generate your own electricity, while you can't generate your own petrol or diesel.