Toyota’s new CEO adjusts EV plans but sticks to a hybrid approach
Toyota’s newly elected CEO, Koji Sato, is tasked with pulling the automaker out of the past and into the modern era. After announcing plans to introduce 10 new EV models on Friday with 1.5 million in electric vehicle sales by 2026, is the automaker doing enough?
After selling more than 10.5 million vehicles last year, Toyota maintained its position as the world’s largest automaker over Volkswagen for the third straight year.
Toyota is known for being a pioneer in hybrid technology with more than 20 years of experience since releasing the first Prius, but the automaker has struggled in shifting to fully electric, zero-emission vehicles.
Akio Toyoda, the 66-year-old grandson of the company’s founder, who was one of the most outspoken critics of going all in on EVs, announced he would step down from his position in January “to advance change at Toyota.”
The automakers underwhelming efforts toward zero-emissions EVs have resulted in one of the least developed supply chains for reducing emissions, making it the target of climate activists globally.
Toyoda has been replaced by former Lexus chief branding officer Koji Sato. With newly elected leader Sato at the helm, many believed the company could and should take a new direction before it was too late.
In February, Sato revealed he would boost Toyota’s EV efforts with plans to implement a new business structure and strategy when he took over beginning this month, claiming, “Now that the time is right, we will accelerate BEV development with a new approach.”
Toyota plans 10 new EV models, 1.5 million sales by 2026
In a press release Friday, Sato revealed his vision and the new structure he aims to create for the future of Toyota.
Sato said, “We want to protect the beautiful Earth and enrich the lives of people around the world,” continuing to explain:
For the car to continue being a necessary part of society, we need to change the future of the car.
For that to happen, Toyota says it is committed to achieving carbon neutrality over the entire cycle of its vehicles, but by… 2050.
As intermittent targets, Toyota aims to reduce CO2 emissions for the vehicles it sells globally by 33% by 2030 and over 50% by 2035, with 2019 as a base.
Sato says the first thing the automaker will do is “implement electrification,” which it has the ability to do so now.
Hiroki Nakajima, executive vice president at Toyota, explained the company’s new electrification strategy, including 10 new battery electric vehicles by 2026, representing 1.5 million EV sales annually.
Toyota also hinted that a new EV platform may be in the works, after claiming its new generation of BEVs – “entirely different from those today” – will double its driving range.
To drive down costs, the Japanese automaker is taking another page from Tesla’s playbook by focusing on manufacturing efficiency with autonomous processes.
Meanwhile, Toyota is sticking to its “multi-pathway approach” including hybrids and fuel cell vehicles.
Toyota said it will increase battery efficiency in its plug-in hybrids to extend EV driving range beyond 124 miles (200 km). As for fuel cell vehicles, Toyota is pursuing mass production with a focus on commercial vehicles.
Electrek’s Take
Although 1.5 million EV sales may seem like a lot, when considering Toyota sold over 10.5 million vehicles last year, it would still represent less than 15% of total sales.
In comparison, Tesla sold 1.3 million fully electric cars last year with another record 422,875 vehicles delivered in the first quarter alone.
While many automakers are already achieving double-digit EV sales, or even 100%, Toyota is sticking to a modest goal yet again despite claims of going “Beyond Zero” with its bZ campaign.
Volvo, Mercedes, Jaguar, Cadillac, Rolls Royce, Alfa Romeo, and more have committed to going all-electric by 2030. Even Ford, GM, and Stellantis are targeting 50% fully electric sales by 2030.
Despite an open letter calling for Sato to change the direction (including phasing out hybrids and plug-in hybrids) of Toyota from 54 consumer and environmental groups last month, the leader has spoken.
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This week on Electrek’s Wheel-E podcast, we discuss the most popular news stories from the world of electric bikes and other nontraditional electric vehicles. This time, that includes a merger between Electric Bike Company and Integral Electrics, California looking to clamp down further on Sur Ron hooligans, a Super73 recall, Cowboy’s production move, a tour inside Bafang’s factory in China, and more.
The Wheel-E podcast returns every two weeks on Electrek’s YouTube channel, Facebook, Linkedin, and Twitter.
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Here are a few of the articles that we will discuss during the Wheel-E podcast today:
Here’s the live stream for today’s episode starting at 9:00 a.m. ET (or the video after 10:00 a.m. ET):
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NIU, best known as a leader in the electric moped market, has expanded considerably over the last few years. In addition to offering a hot-selling new electric dirt bike and showing off concepts for electric ATVs, the company is now unveiling an electric microcar known as the NIUMM 500.
Still in its prototype stage, the two-seater NIUMM 500 electric microcar is designed to fit into L6e category of light quadricycles in Europe. As a quadricycle, these vehicles are technically not “cars” in the traditional sense (or in the legal sense), and thus have their own set of regulations that help streamline their path to production. Other popular microcars, such as the Citroen Ami, have taken a similar path and reached success with over 30,000 units sold.
With a target price of €8,000 (approximately US $8,300), the NIUMM 500 is intended to fill that niche role of a comfortable, weather-protected urban commuter, going beyond a typical moped or motorcycle with the advantages of locking storage and the ultimate achievement of staying dry in the rain.
In order to qualify as an L6e vehicle though, there are certain restrictions such as speed and power that prevent the NIUMM 500 from laying down the fastest lap times. A top speed of 45 km/h (28 mph) keeps the microcar city-oriented, though you could probably tell by looking that this isn’t a highway vehicle.
In some countries, light quadricycles don’t even require a full car driver’s license, instead allowing the operator to hold a more easily-obtainable moped permit.
Despite the speed limitation, the little electric microcar has a lot going for it. The traditional steering wheel control and two-pedal drive setup will feel familiar to seasoned car drivers, yet the vehicle offers a more moped-like parking experience by taking up a mere fraction of a parking spot. The narrow size helps squeeze through tight city streets, though you likely won’t be lane splitting quite like a moped.
Back on the car-like side of things, electric locks and power windows come standard (including a power rear windshield), as does electric heating. Optional add-ons include a sun roof and air conditioning. There’s a decently large storage area behind the two seats, and another small storage area in front of the passenger seat.
And in another nod to its hybrid design, halfway between a moped and a car, the NIUMM 500 can even be outfitted with removable batteries (straight from NIU’s NQiX electric mopeds). The removable battery version allows apartment dwellers or others without access to street-level parking to still own and charge their own microcar. Just like how I charge my own NIU batteries at home, owners can simply carry the batteries up the elevator and charge them in their apartment.
For those with charging access though, there’s a fixed battery version with a larger 7 kWh capacity. It gets an impressive 118 km (73 miles) of range, compared to the removable battery version’s 60 km (37 miles) of range.
Both appear to feature the same 5 kW motor with a peak output of 10 kW – also the same drivetrain from the NIU NQiX electric moped.
NIU is currently showing off the new vehicle at the Motorrad show in Dortmund, Germany.
There’s no word yet on if or when the NIUMM 500 will see production, but based on conversations with company insiders, it sounds like NIU is fairly serious about the microcar’s future.
Here’s to hoping it sees the road soon, and that they can keep that target price in check on the way there.
Electrek’s Take
Yes, I’m all in on this!
I LOVE electric microcars. Give me a tiny car, a golf cart, whatever you want to call it, and I’ll take it. For city commuters, 25 mph is often sufficient, and since many people don’t feel safe on a scooter, these types of vehicles fit the bill as lighter and more efficient alternatives to a car that still carry some benefits of a scooter or moped.
I tested out Wink Motors’ vehicles in NYC a couple of years ago and got around the city just fine with a top speed of 25 mph, so I think these could even work in the US. But of course Europe is the primary target here thanks to their more conducive quadricycle laws.
If anyone at NIU is reading this, I will travel to review!
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Renewables increased their output by almost 10% and provided nearly a quarter of US electrical generation in 2024, according to newly released US Energy Information Administration (EIA) data.
Solar was still No 1
Solar remained the US’s fastest-growing source of electricity in 2024. Utility-scale and “estimated” small-scale (e.g., rooftop) solar combined increased by 26.9% in 2024 compared to the same period in 2023, according to the SUN DAY Campaign, which reviewed EIA’s “Electric Power Monthly” report data.
Utility-scale solar thermal and photovoltaic expanded by 32%, while small-scale solar increased by 15.3%. Together, solar was nearly 7% (6.91%) of total US electrical generation for the year.
In December alone, electrical generation by utility-scale solar expanded by 42% compared to December 2023.
Small-scale solar (systems <1 MW) accounted for 27.9% of all solar generation and provided 1.9% of the US electricity supply in 2024. In fact, small-scale solar PV generates over five times more electricity than utility-scale geothermal.
2024 renewables milestones
The electrical output of US wind farms in 2024 grew by 7.7% year-over-year. Wind remains the largest source of electrical generation among renewable energy sources, accounting for 10.3% of the US total.
Wind and solar combined provided more than 17.2% of US electrical generation during 2024. The mix of all renewables – wind, solar, hydropower, biomass, geothermal – provided 24.2% of total US electricity production in 2024 compared to 23.2% of electrical output a year earlier.
Between January and December, electrical generation by renewables grew by 9.6% compared to the same period the year before – nearly three times the growth rate of natural gas (3.3%) and over 10 times that of nuclear power (0.9%).
In December alone, electrical generation by renewables grew by 10.1% compared to December 2023.
Wind and solar together produced 15.9% more electricity than coal and came close to matching nuclear power’s share of total generation (17.2% vs. 17.8%).
The mix of renewables reinforced their position as the second largest source of electrical generation, behind only natural gas.
“Renewable energy sources now provide a quarter of the nation’s electricity,” said the SUN DAY Campaign’s executive director, Ken Bossong. “Consequently, the rash efforts of the Trump Administration to undermine wind, solar, and other renewables will have serious negative consequences for the nation’s electricity supply and the economy.”
Read more: Renewables provided 90% of new US capacity in 2024 – FERC
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