Toyota to set up new Electric Vehicle company

Toyota has officially announced that it will be setting up a new in-house venture company, dedicated to development of electric vehicles. The new EV company will start operations from December 2016.

Toyota has currently designated just four people in the new firm. All four members have been roped-in from different verticals of the Toyota Group. The company claims that the small team will work using "unconventional work processes" in order to accelerate product development. The team will have access to all tools, knowledge and research information of the Toyota group.

Deeper details about platforms, powertrain and timeline for the company's first EV car haven't officially been revealed. However, reports suggest that Toyota's first EV will be launched in 2020 and will share its platform with the new-gen Prius.

This focus on the EV space is a departure from Toyota's earlier strategy. The Japanese automaker has till now been a firm believer that the way forward from conventional cars is hydrogen fuel cell. The Toyota Mirai was part of Toyota's ambition to bring hydrogen fuel cell-powered cars on public roads. However, the company now accepts the fact Hydrogen-powered cars suffer from limited infrastructural support. Hence, it has now decided to concentrate on electric cars which are a more feasible option.

Source: AutoExpress

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