Akio Toyoda is a man who speaks his mind. He’s been saying for years that forcing everyone to buy EVs isn’t the way forward. Toyota’s chairman is adamant that the transition can’t be rushed and that going all-in on electric vehicles would have massive repercussions across the automotive industry. He believes millions of jobs throughout the supply chain could be at risk if the combustion engine is phased out too quickly. On the environmental front, Toyoda maintains that EVs are still much dirtier than hybrids.
The grandson of Toyota founder Kiichiro Toyoda claims the company has sold around 27 million hybrids since launching the first-generation Prius in 1997. According to him, those hybrids have had the same carbon footprint as nine million fully electric vehicles. Put another way, a single EV is as dirty as three hybrids. He argues that the gap is even wider when EVs are charged using electricity from thermal power stations reliant on fossil fuels, as is the case in Japan.
“But if we were to have made nine million BEVs in Japan, it would have actually increased the carbon emissions, not reduced them. That is because Japan relies on thermal power plants for electricity.”
Proving Naysayers Wrong
Toyota’s reluctance to fully embrace EVs has sparked criticism, with some even questioning the company’s future. You’ve probably seen comments predicting Toyota’s downfall for lagging in the electric race, but that hasn’t happened. In fact, the opposite is true. In 2024, Toyota was the world’s largest automaker for the fifth year in a row.
Sure, its EVs may trail the competition, but Toyota more than makes up for it with its hybrids and the remaining ICE models it still sells. The latest gas-powered car to receive the hybrid treatment is the Aygo X, the firm’s smallest model outside of the kei cars, which are sold exclusively in Japan. Toyota claims the dinky hatchback has the lowest CO₂ footprint of any non-plug-in car on the market.
Akio Toyoda once said EVs would never exceed a 30% market share and argued that the industry should focus on hybrids and synthetic fuels. Although it has admitted the Mirai has been a commercial failure, Toyota remains committed to hydrogen and sees potential in combining it with combustion engines. At the same time, it’s helping BMW launch its first series-production hydrogen vehicle in 2028.
Toyota Can Do It All
As the automotive powerhouse it is, Toyota has the financial and industrial muscle to improve its hybrids while also developing better EVs. It has made the bZ more appealing and added the bZ Woodland and C-HR to its growing electric lineup. Its luxury brand Lexus recently launched the ES electric sedan and upgraded the RZ. According to a new Bloomberg report, two more EVs are coming to the U.S. by 2027.
While the spotlight is on hybrids and EVs, Toyota hasn’t forgotten the joy of driving. The company’s CEO, Koji Sato, was recently quoted as saying, “A car is not a car if it’s not fun.” In the coming years, expect a new Supra, a revived Celica, and possibly a new MR2, judging by the mid-engine prototype shown earlier this year. Lexus, too, will launch a GT3-style road car, likely with a V-8. All told, Toyota appears to have just about every base covered.
The impending return of the FJ Cruiser would further cement Toyota’s reputation for offering one of the most comprehensive lineups in the automotive industry.
