Toyota Motor Corporation TM is planning to become the first global automaker to completely transform from being a maker of gasoline-engine vehicles to one that primarily manufactures electric vehicles and other non conventional-fuel cars. The automaker expects that by 2050, sales of gasoline-powered and diesel vehicles will be negligible. However, Toyota generates about 85% of its revenues from gasoline- and diesel-powered vehicles.
Hence, the company is focusing on the development of environment-friendly vehicles which lower carbon emission. Toyota intends to reduce average emissions from its vehicles by 90% by 2050 from the 2010 level. The automaker expects that the level of carbon dioxide emissions will be nearly zero once it shifts to all electric or non-conventional fuel vehicles by 2050.
Toyota is actively involved in the development of new fuel cell vehicles (FCVs). In Nov 2014, the company introduced its FCV, Toyota Mirai, which started selling in Japan from Dec 15, 2014. To date, the company has sold 350 Mirai vehicles. Based on its rising popularity, Toyota has decided to increase the production of the Mirai over the next couple of years to meet the expected rise in demand. The company will raise the production of Mirai to 2,000 units in 2016 and further to 3,000 units in 2017.
Toyota expects to sell 30,000 FCVs annually by 2020. The automaker will also launch the Mirai in the U.S. and Europe by mid 2015. Toyota Mirai runs on electricity produced by mixing hydrogen fuel and oxygen in the air, without any carbon emissions. However, its FCVs are encountering challenges due to the shortage of hydrogen fuel stations outside Japan.
Toyota also plans to improve the fuel efficiency of its hybrid vehicle systems. Hybrid vehicles use a combination of electric motor and the gasoline engine. Toyota Prius, which was launched in 1997, is now the company’s top-selling hybrid vehicle. Toyota intends to develop a hybrid version in every category, including gasoline sport-utility vehicles as well as luxury models.
However, Toyota will face increasing competition from other automakers .including those producing electric vehicles. Tesla Motors, Inc.’s TSLA third generation electric car, Model 3 which is expected to cost half as much as Model S, and is meant to serve the mass market will be launched in late 2017.
General Motors Company GM will start building the electric vehicle Chevrolet Bolt from Oct 2016. The car should be sold from 2017. Nissan Motor Co. Ltd.’s NSANY Leaf hybrid is highly popular.
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