Toyota's Chief Technology Strategist Outlines Ambitious Goals Behind Company's Extensive Financial Commitments

Toyota Embraces All-Round Electrification Strategy

Toyota, the world-renowned automaker, is taking bold steps towards electrification, leveraging advanced computer simulations and technologies enabled by digitization to compress considerable amounts of basic units. This move is part of a comprehensive strategy that includes the development of hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), fuel cell electric vehicles (FCEVs), battery electric vehicles (BEVs), and other new options like hydrogen-powered engine vehicles.

The company's diverse offering is a reflection of its commitment to customer convenience and responding to customer requests. Toyota believes that it is best to provide customers with a variety of options, catering to different preferences and needs. This approach is in line with Toyota's "Multi-Pathway" strategy, which allows the company to respond to strong market demands, especially for hybrids, and adapt to different regional needs.

Key initiatives in Toyota's electrification strategy include digitalization and the Toyota Production System (TPS). Masahiko Maeda, Toyota's Chief Technology Officer, cited these as crucial elements in the company's all-round electrification strategy. The strength of TPS continues to play a key role in developing future technology, with TPS being applied in non-production workplaces as well.

TPS is particularly useful in organizing information flows during wide-ranging development, making each development effort smaller and improving efficiency. This was evident in the development of the "bZ4X" BEV, where Toyota managed to reduce development lead time by 30% compared to usual Toyota vehicles. Shortening lead time enables flexibility in the face of drastic changes like customer preference and regulations.

Toyota's stance on environmental technology development is that eco-friendly vehicles are only meaningful if they achieve widespread use and contribute to CO2 reductions. With this in mind, Toyota is targeting a 10% more reduction for future new BEVs.

The company's commitment to electrification was evident at the 2021 Ordinary General Shareholders' Meeting, which took place on June 16 and lasted for 1 hour and 49 minutes. The meeting focused on Toyota's all-round electrification strategy, with Chief Technology Officer Masahiko Maeda providing a response. The meeting also included 1.5 hours of answering questions from shareholders.

Toyota's electrification journey began in 1997 with the launch of the world's first mass-produced hybrid electric vehicle, the "Prius". Since then, the company has continued to innovate and lead in the field of environmental technology. Akio, who chaired the meeting, decided to respond to only 2 out of 11 questions himself, a change from previous years where he would respond to more questions or have others respond first and make additional comments.

As Toyota moves forward with its electrification strategy, it remains focused on achieving CO2 neutrality by 2040 while preserving its current market share and leveraging its hybrid technology leadership. The company's approach is a testament to its commitment to sustainable and customer-focused innovation.

Toyota's Chief Technology Strategist Outlines Ambitious Goals Behind Company's Extensive Financial Commitments