Toyota exec equates 300K hybrids sold to 90K electric vehicles while heatedly defending company’s EV plans
Toyota can’t seem to grasp why it’s being criticized for its lack of progress in fully electric vehicles. The Japanese automaker is making headlines Wednesday after an executive went off on a tangent defending Toyota’s carbon reduction efforts and future EV plans – the frustration comes as Toyota has come under fire for not going all in on electric vehicles.
The world’s largest automaker stands by its position to not rush into electric vehicles despite the overwhelming demand growing in every primary market.
Almost every automaker has turned to a preorder system for their electric models because they can’t keep up with orders. According to the International Energy Agency (IEA), electric vehicle sales are on pace to hit another global record this year after almost doubling in 2021 to 6.6 million.
With new government incentives and rebates, electric vehicle adoption is expected to continue gaining momentum as production capacity comes online and automakers switch their focus to EVs.
Despite this, less than two months ago, the EVP of sales at Toyota Motor North America claimed, “I don’t think the market is ready” for electric vehicles, citing high costs and lack of infrastructure (charging).
In response to that, the IEA reports:
Deployment of publicly available EV charging points increased by close to 40% in 2021.
New federal incentives are expected to drive this number significantly higher in 2022. The US DOT announced $5 billion in funding under the National Electric Vehicle (NEVI) Formula Program, part of the Bipartisan Infrastructure Law, to build an EV charging network across the US over the next five years.
Meanwhile, Toyota’s first attempt at a fully electric car, the bZ4X, was (to say it nicely) less than ideal as it was recalled due to the wheels falling off (they resumed sales earlier this month).
And then, two weeks ago, Toyota’s CEO told reporters it would stick with a hybrid strategy, stating, “playing to win means playing with all the cards in the deck,” referring to offering fuel cell alternatives, hybrids, and EVs. It seems the entire company is on board with these plans as another executive reiterated the same train of thought, defending the company’s progress so far.
Executive gets heated defending Toyota’s EV plans
Sean Hanley, VP of Sales and Marketing at Toyota Motor Australia, delivered remarks during the debut of the automaker’s new Toyota Corolla Cross Hybrid in Sydney.
After the speech, while addressing the media, questions about the company’s carbon reduction plans and EV progress (or lack thereof) seemed to strike a nerve. Hanley said:
Toyota is not opposed to battery-electric vehicles. We believe that to get to carbon neutrality, you have to take everyone on the journey.
Adding:
We believe that you have to have a diverse range of technologies to get there. The point is this: carbon is the enemy here, not the powertrain.
Mr. Hanley continues, explaining Toyota is in “full support of some mandated type of legislation” for reducing carbon emissions and believes carbon neutrality must be achieved. However, in Hanley’s words:
What we’re disagreeing on is … how and when you get there.
He then directed his attention toward those criticizing Toyota, pointing to the automaker’s efforts in reducing carbon emissions in Australia since 2001 with hybrid vehicles.
We are the only car company that represents 30 percent of our sales that are hybrid right now. That is playing a role in reducing (emissions).
According to Toyota’s calculations, three hybrid vehicles are “almost equal” to one electric car, comparing the carbon emissions reduced with its 300,000 hybrids sold in Australia to about 90,000 EVs.
Electrek’s Take
Hybrids did play a role in reducing carbon emissions in the transportation sector, and Toyota played a significant role over the past 21 years. However, the issue Toyota doesn’t seem to be grasping here is hybrids were never the solution; they were a great innovation to eventually graduate to fully electric cars as tech progressed.
Technology has advanced significantly in the past several years – allowing for a higher range – which is the primary concern for those looking to buy an electric vehicle. And although hybrids are a better alternative to gas-powered cars, they are still not fully efficient.
A new study finds that because hybrids are heavier, they can consume more fuel in the long run, eroding the benefits.
Toyota insists on continuing to offer hybrids, and fuel-cell vehicles, refusing to adapt and update its EV plans for the modern age.
The popularity behind EVs is only expected to accelerate in the next few years as new electric models are introduced to the market, and federal incentives are designed to lower the costs while expanding access to charging. Toyota is known for being cautious, but this time it may cost them in the long run.
Toyota was a first mover in the hybrid space, a big reason it grew to become the most prominent global automaker. However, with all major markets (North America, Europe, China, etc.) accelerating pure electric sales, it may fall behind as demand for zero-emission EVs continues building.
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Leading electric vehicle analyst, author, and industry thought leaders Loren McDonald and Bill Ferro stop by Quick Charge to discuss EV Adoption’s acquisition by Paren, the “crisis” of EV charging reliability, and the real state of the EV market.
Depending on who you listen, EVs are either driving brands to record growth and are about cross that critical 10% of the overall market nationwide, or the future is bleak, the market is down, and EVs just aren’t selling. What’s really going on? Loren and Bill (probably) have some answers.
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Read more: All my favorite EVs, racecars, and robots from Electrify Expo Austin.
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Chevy EV owners in Texas who have Reliant as their electric utility can now charge for free at night with renewable energy.
Over 150 Chevrolet dealerships across Texas are now offering the Reliant Free Charge Nights plan to new EV buyers. With Free Charge Nights, customers can offset their charging costs by receiving credits for electricity used between 11 pm and 6 am. The plan is powered entirely by renewable energy, thanks to the purchase of renewable energy certificates (RECs).
Rasesh Patel, president of NRG Consumer, says the plan is about making power personal: “We’re excited to help Chevrolet EV drivers offset the cost of charging their vehicle all while having access to a renewable electricity plan.”
This collaboration aims to make EV adoption more appealing by making charging cheaper and greener. GM Energy’s chief revenue officer, Aseem Kapur, emphasized that partnerships like this help build the ecosystem needed to support an all-electric future: “The Reliant Free Charge Nights plan is a great example of how an automaker and an energy company can work together to make EV adoption an easy decision.”
Existing Reliant customers can also sign up for the Free Charge Nights plan. To get started, Chevrolet EV owners need to designate their vehicle on the GM Energy Smart Charging Portal before enrolling in the plan.
Reliant Energy, a subsidiary of NRG Energy, serves over 1.5 million customers in Texas, making it one of the largest electricity providers in the state.
Read more: Texas to get 1 GW AI-powered virtual power plant, enough to power 200,000 homes
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Texas is about to get a major power boost – a new AI-powered virtual power plant (VPP) delivering capacity equivalent to 200,000 homes during peak demand.
NRG Energy is teaming up with Renew Home to bring nearly 1 gigawatt (GW) of capacity to the Texas grid by 2035, aiming to make it more resilient while helping residents save on energy costs.
The new VPP will rely on hundreds of thousands of smart thermostats and other connected home devices, making use of AI technology provided by Google Cloud. These devices, like Vivint and Nest smart thermostats, will be offered to eligible customers at no cost. By automating HVAC adjustments, they help shift energy use to when electricity is cheaper, cleaner, and less strained.
NRG and Renew Home have big plans for the VPP. Starting in spring 2025, the companies plan to roll out the program across Texas, installing these smart thermostats in homes served by NRG’s retail electricity providers. Eventually, they plan to add home battery storage and EVs to expand the power plant’s capabilities.
Texas has faced record-breaking energy demands, with peak usage hitting 85 GW in 2023. As the state’s population grows and extreme weather becomes more frequent, VPPs like this one could play a key role in stabilizing the grid. VPPs aggregate a lot of small-scale energy resources, from smart thermostats to home batteries, and use them to help balance supply and demand during times of high stress on the grid.
This nearly 1 GW VPP will be one of the largest of its kind in Texas. NRG’s president of consumer operations, Rasesh Patel, calls it a “pivotal step” for improving customer experience while making Texas’ energy infrastructure more sustainable and resilient.
In addition to Renew Home, NRG is working with Google Cloud to maximize the power plant’s effectiveness. Google Cloud’s AI and analytics tools will help predict weather conditions, forecast renewable generation, and optimize energy usage, all of which will help make energy management smoother for both customers and the grid.
Ben Brown, CEO of Renew Home, said:
NRG’s commitment to creating a more resilient and sustainable energy future while also making electricity bills more affordable makes them an ideal partner for co-developing this unique VPP program.
This initiative raises the bar for future-proofing our electricity infrastructure and delivering cost savings to customers.
Read: Chinese solar giant Trina sells its Texas factory a week after it opens
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