The world’s top-selling automaker is trying to catch up with Tesla and other electric vehicle (EV) makers. Toyota Motor (7203.T) is investing in self-propelled assembly lines and massive die casting to wring inefficiency, including excess costs, from its manufacturing processes as it aims to roll out electric vehicles across its entire lineup by 2025. It also wants to sell EVs with 600 miles of range and above in 2026.
A report in Nikkei said on Friday that the Japanese carmaker will step up production of battery-powered vehicles over the coming years to reach an annual output of more than 600,000 vehicles in 2025. That would be almost double the current annual output of Toyota’s EV production.
Toyota’s decision to step up production comes as it faces increasing shareholder pressure to reduce greenhouse gas emissions. Investors have pushed the carmaker to electrify more of its vehicles, with some calling for Toyota to phase out gasoline-powered cars altogether. The company has earmarked $70 billion for the effort, with half of that amount set aside for full EVs.
The new investment will help Toyota to meet its goal of producing and selling 10 EVs globally by 2026, including a three-row electric SUV due to go into production in the United States in 2025. It will also enable Toyota to offer next-gen EVs with double the driving range.
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During a news conference on Wednesday, Toyota’s executive leadership teased the three-row EV, saying that it will have “more than twice the driving range of any vehicle currently available in North America.” The company has not yet announced what the model will be called or which vehicle it will sit in the portfolio, but the CEO did say the EV will be offered at a price point competitive with other Toyota models.
In a statement, Toyota also confirmed that its North Carolina plant will begin producing lithium-ion batteries in the first quarter of 2025. The batteries will be used for hybrid and plug-in hybrid electric vehicles as well as battery electric vehicles, the company says. The plant will initially produce batteries for PHEVs like the RAV4 Prime and Prius Prime, then shift to BEV batteries later.
The company is working to speed up its EV production in part to compete with rivals, including a slew of cheaper Chinese EVs. Earlier this year, Toyota set up a separate unit to oversee the development of its next-generation EVs. It also aims to slash costs by adopting the Giga casting technology invented by Tesla to cut parts production time and factory investment.
The Giga casting technique involves using a massive aluminum casting machine to produce the parts of an EV, which robots can assemble. This process is more efficient than traditional manufacturing methods, which rely on conveyor belts to move cars through the assembly line. The company has also promised to bring its Arene operating system into the next generation of its EVs, which will be able to receive over-the-air updates.
