Toyota’s new CEO promises to accelerate EV plans

Toyota’s upcoming new CEO Koji Sato won’t start until April, but he’s already promising a major shift to prioritise battery-electric vehicles (BEVs) – while sticking with a diverse powertrain strategy.

Sato plans to “drastically” revamp the Japanese automaker’s EV strategy – which has long been criticised for its reluctance to commit to the technology – by accelerating the roll out of a next-generation platform expected around 2026, positioning Lexus to lead the charge, and appointing younger executives.

“The first is business reform starting with next-generation BEVs,” Sato said.

“To deliver attractive BEVs to more customers, we must streamline the structure of the car and with a BEV-first mindset, we must drastically change the way we do business.

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“We are trying to find a characteristic unique to Toyota. We need to go to the next step. We are going to accelerate specific and concrete activities.”

The incoming CEO, who currently leads the Lexus luxury brand and Gazoo Racing (GR) motorsport division, also said the EV overhaul will focus on new engineering and manufacturing techniques to reduce costs, while focusing on achieving carbon neutrality in Asia and strengthening its smart city and software initiatives.

The leadership team reshuffle brings more younger individuals aged in their early fifties; however, it’s still dominated by Japanese males – with only one female operating officer at the company.

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Toyota BZ4X batteries and motors

But, the Japanese car giant won’t go all-in on BEVs with Sato standing by his predecessor, Akio Toyoda, by offering a range of powertrains including traditional hybrid, plug-in hybrid, and hydrogen fuel-cell or hydrogen-combustion cars – instead of a “one-size-fits-all solution”.

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Toyota Australia's vice president of sales, marketing and franchise operations, Sean Hanley, welcomed the new CEO’s strategy as it prepares to launch its first BEV, the RAV4-sized bZ4X SUV, locally at the end of the year.

“Sato-san, our new incoming president… will accelerate battery-electric vehicles as he did in Lexus, he will do in Toyota,” Hanley told Wheels.

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“Akio Toyoda says, ‘if you want to exist in the next 100 years, you’ve got to transform again’. We have got to transform again.

“Because if we just stay as a single car company, thinking the way we thought the last 30 successful years, it’s going be difficult to survive the next 30 years. 'This is a once in a lifetime transformation' [Toyoda] said; 'you must now go to a mobility company'.”

Toyota and Lexus will launch the BZ4X and RZ electric SUVs this year to compete in a concentrated segment, including the popular Tesla Model Y, Hyundai Ioniq 5, Volvo XC40 and C40 Recharge, Genesis GV60, and BMW iX3.

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Uniquely, Toyota will utilise its 300-strong dealership network to install EV chargers at most sites, with the franchisees able to opt-in to offering it to the public.

However, the chargers will be exclusive for Toyota EV drivers only in a similar move to Tesla, which restricts access to its Supercharging network as a key selling point to purchase a Tesla EV.

But, the company is starting to open up to all EVs in Australia at an expensive price.