Toyota is strategically accelerating its foray into the European electric vehicle (EV) market, eyeing a 20% share of new car sales by 2026 with the introduction of six new EV models. Facing intensified competition from European and Chinese rivals, the move is part of Toyota’s broader global goal of achieving 1.5 million EV sales annually by 2026.
Yoshihiro Nakata, President and CEO of Toyota Motor Europe, emphasizes the high awareness of carbon neutrality in Europe and the surging demand for zero-emission vehicles (ZEVs). While Toyota had initially aimed for a 50% share of Western European EV sales by 2030, the new 20% target for the entire region serves as an interim goal. Nakata highlights the importance of local production to meet sustained sales volume, with potential bases in the U.K., France, and the Czech Republic.
However, Toyota faces challenges, including enhancing EV development capabilities, building a robust supplier network, and addressing cost competition. In the first ten months of 2022, Toyota’s European EV sales were around 20,000 units, constituting a 1% market share. Notably, competitors like Volkswagen and Tesla have achieved significantly higher figures, reflecting a highly competitive landscape.
Addressing concerns about affordability and battery supply, Nakata acknowledges the need to improve cost competitiveness. Toyota’s ability to establish a strong EV presence in Europe will serve as a key indicator of its competitiveness in major markets like North America and China, crucial for its multi-pathway strategy in providing eco-friendly vehicles worldwide.
