Toyota, one of the world’s largest automakers, intends to invest 4 trillion yen ($35 billion) in the development of a full lineup of 30 battery-powered electric vehicles by 2030. It plans increase global sales of battery electric vehicles by 3.5 million units per year by the end of the decade, according to CEO Akio Toyoda, who spoke on a press conference on Tuesday (14 December).
Toyota’s current electric vehicle sales are dominated by hybrid electric vehicles, which are propelled by a combination of an internal combustion engine and battery-powered electric motors. Battery-only EVs account for only a small portion of the company’s current sales.
According to Toyoda, Toyota is aiming for carbon-neutral manufacturing plants by 2035. Toyota will increase new investments in battery technologies by 500 billion yen ($4.4 billion) to 2 trillion yen. It will be part of Toyota’s larger 4 trillion yen investment, including both capital expenditure and R&D, in battery electric vehicles.
Toyota also intends to invest another 4 trillion yen in other types of electric vehicles, such as hybrids, plug-in hybrids, and fuel-cell electric vehicles that run on hydrogen.
Toyota targets to have battery electric vehicles for its luxury brand Lexus to be 100% of the vehicle sales in Europe, North America, and China by 2030 and globally by 2035.
Although a pioneer of hybrid models, Toyota has been comparatively sluggish in its move toward battery-only electric vehicles compared to some of its other competitors like Ford and GM.
Toyota’s stock price rose by more than $10 – from $176.12 per share on 13 December to $186.75 on 15 December.