Incoming Toyota CEO Koji Sato is accelerating the shift to electric vehicles (EVs) and is calling for an “EV-first mind-set” within the company.
Key Details
- Toyota’s new CEO, Koji Sato, calls for the company to focus on EV manufacturing by accelerating EV-part development and manufacturing methods.
- Sato says Toyota will begin developing a new line of EVs from its luxury brand Lexus by 2026 using an EV-specialized manufacturing platform—an architecture in which multiple EV models can be built.
- The company will continue manufacturing and expanding its electric lineup along with the new Lexus EVs.
Why it’s news
Toyota’s new CEO, Koji Sato, is shifting the company’s focus to EVs, calling for an “EV-first mind-set.”
“We need to drastically change how we do business,” says Sato.
Sato is set to take the CEO role in April, taking over the position from Akio Toyoda, who has been Toyota’s CEO since 2009.
Sato says Toyota needs to shift its focus to electric cars to keep up with the growing market competition. He wants to accelerate EV production on new vehicles and continue the production of the company’s existing EV lineup.
The company previously said it aimed to make its Lexus brand all-EV by 2035, and now Sato wants to focus on this effort by creating a new strategy to create Lexus EVs.
Toyota plans to develop Lexus EVs by 2026 using an EV-specialized manufacturing platform—an architecture in which multiple EV models can be built.
The company is making large investments in EVs and hopes to make its own batteries and invest in the supply chain for battery parts in the future rather than relying on outside companies for EV batteries.
Toyota is the leader in selling hybrid gas-electric vehicles but falls short in EV sales, with less than 1% of sales being EVs. By 2030, the company’s goal is to have a third of its annual sales of around 10 million vehicles be electric.
“We’ve seen the kind of EVs we are aiming for,” says Sato. “Now that the timing is right, we will accelerate that development with a new approach.”