Toyota Has No Immediate Plans for a Small, Cheap Electric Car

An Aygo X-inspired urban EV was revealed in 2021 but plans are now on hold

Toyota has announced that it currently has no immediate plans to offer a small, cheap electric car. The high cost of battery materials is cited as the main reason behind this decision, making the prospect of an electric Aygo X unlikely.

Rival Brands Moving Forward with Compact Electric Cars

While brands like Volkswagen, Renault, and Kia have confirmed their plans to offer compact, entry-level electric cars at around £25,000 within the next two years, Toyota has stated that its cheapest electric vehicle (EV) for the foreseeable future will be the production version of the new Urban Crossover concept, expected to cost around £32,000.

Premium Attached to Electric Cars

When asked about Toyota’s absence in the small and affordable electric car segment, Andrea Carlucci, the brand’s product development boss, explained that there is still a “premium attached to electric cars.” Carlucci believes that there needs to be a significant reduction in the cost of batteries before a value electric supermini can be produced profitably at scale.

Carlucci added, “We cannot achieve that level at the moment.” As a result, the Urban Crossover will serve as Toyota’s entry point into their EV lineup. This raises questions about the fate of the Aygo X-sized electric supermini concept that Toyota showcased in 2021.

The Small Crossover Concept

The Aygo X-inspired urban EV, also known as the ‘Small Crossover’, was unveiled two years ago but has not been seen since. While several other concepts from that group have evolved and are set to hit showrooms soon, the Small Crossover is not among the five new electric SUVs that Toyota plans to launch by 2026.

Toyota’s Approach to Affordable Electric Cars

Carlucci acknowledged the market’s tendency towards lower-end electric cars but expressed concerns about the technical compromises associated with affordability. He stated, “If I look at accessible and affordable components on the market, it means that the offer for a battery-electric vehicle is limited – then we have to really look into the price range.”

Carlucci emphasized the need for honesty in the narrative surrounding electric cars and understanding what customers truly want. Toyota will not pursue an electric car like the Aygo X unless there is a dramatic change in the marketplace that requires them to do so.

Toyota’s Future Focus

While Toyota will not shift its focus entirely to the SUV market, Carlucci hinted at plans to replace its popular hatchback, Yaris, with an electric vehicle in the future. He believes that nameplates like Yaris are the signature of the brand in Europe.

Overall, Toyota’s current strategy does not include a small, cheap electric car. However, they remain open to adapting their plans based on market demands and changes in battery technology.