Toyota has been one of the last companies to put billions of dollars into electric cars, even though everyone else has been doing it quickly. Because the car company thinks there are other ways to reduce pollution, it has kept its promise to hybrid and even hydrogen technologies instead of switching all its vehicles to electric ones simultaneously. Other automakers are finally understanding what Toyota has been saying for years. In 2023, EV sales will slow down, demand will drop, and loan rates may increase. “There are many ways to climb the mountain that is achieving carbon neutrality,” Akio Toyoda, who is currently chairman and used to be CEO of Toyota, told reporters at the Japan Mobility Show not long ago. Electric cars are already more expensive than hybrid or gas-powered cars. As prices have increased, range and charging issues have come up, and a global recession is on the horizon, people are less interested in buying pure electric cars. “EV demand next year could be lower than expected,” said Lee Chang-sil, chief financial officer of LG Energy Solutions, as quoted by Reuters. General Motors (GM), which has put a lot of money into its Ultium electric vehicle platform, has lowered its sales goal of 400,000 EVs by 2024 to make electric cars that make more money. “We’re taking immediate steps to enhance the profitability of our EV portfolio and adjust to slower near-term growth,” according to Mary Barra, GM’s chief executive. Additionally, GM and Honda have said they will not be working together on low-cost electric vehicles anymore, even though they agreed to do so more than a year ago. On the other hand, Toyota has always said that it believes in hybrid cars, whether plug-in or not. Jack Hollis, the company’s North American sales head, recently said that demand for the brand’s hybrid cars is “smoking hot.” But this doesn’t mean that Toyota is thoroughly giving up on its EV plans. At this week’s Japan Mobility Show, it showed off two ideas for electric cars. One of them looks a lot like the MR2. It also recently showed off ideas for an electric Land Cruiser and a small electric pickup truck. Toyota is still committed to electric cars and thinks they will help the world reach carbon neutrality in the future. At least for now, the market is backing that.
