Can Toyota Beat Tesla? Insights from Toyota’s General Shareholder’s Meeting
Toyota’s General Shareholder’s Meeting for 2023 recently took place in the automaker’s headquarters in Japan. During the two-hour event, a shareholder asked the panel the million-dollar question: “Can Toyota beat Tesla?”
Toyota’s high-ranked officials took turns to reply, sharing their thoughts on the hot topic. Executive Vice President Yoichi Miyazaki spoke first, backing Toyota’s “multi-pathway approach of decarbonizing through diverse options”. Dr. Gill Pratt, Chief Scientist and Executive Fellow for Research in Toyota, supported this claim from a scientific perspective, stating that “the optimal strategy for dealing with diverse conditions is to prepare a diverse range of solutions”. Toyota plans on pursuing carbon neutrality through a mixture of hybrids, PHEVs, BEVs, FCEVs, hydrogen-powered vehicles, and alternative fuels, with a recent focus on EVs.
Takero Kato, the president of Toyota’s BEV Factory, gave the most elaborate answer. The new division was founded in May 2023 and is dedicated to the development of next-generation fully electric vehicles set to hit the market starting in 2026. Kato expressed his love for BEVs and his desire to change the future of cars, production, and work. He emphasized Toyota’s goal to achieve the same cruising range as hybrid vehicles and to infuse their BEV products with Toyota’s unique character. Kato also highlighted the company’s aim to transform their vehicle structure, halve production line lengths, and create a happy workplace for an aging population. He emphasized the importance of speed in the current era and the collaboration with new partners to generate innovative ideas.
Akio Toyoda, Chairman of the Board at Toyota, joined the conversation by stating that he doesn’t know if love can beat Tesla but believes that cars made by engineers who love them will move people’s hearts. He expressed hope that shareholders would look forward to the BEVs that Toyota creates.
Toyota has faced criticism for the delay in its BEV rollout program, lagging behind rival automakers like VW Group. The company acknowledges that Tesla is often seen as the reference point in the industry. However, Toyota promises that its next-generation BEVs will offer double the electric range with more efficient batteries, while also delivering captivating styling and driving performance.
The question remains: Can Toyota beat Tesla? Some argue that it may already be too late for the Japanese giant, considering Tesla’s dominance in the EV market. However, Toyota’s commitment to a diverse range of decarbonization solutions and their focus on improving BEVs could give them a fighting chance.
Toyota’s multi-pathway approach to decarbonization sets them apart from Tesla’s singular focus on EVs. By investing in a variety of technologies, including hybrids, PHEVs, FCEVs, and alternative fuels, Toyota aims to cater to diverse consumer needs and adapt to different market conditions. This strategy could prove advantageous in regions where EV infrastructure is still developing or where other low-carbon options are more viable.
Furthermore, Toyota’s reputation for reliability and quality could give them an edge over Tesla. While Tesla has been praised for its innovation and cutting-edge technology, it has also faced criticism for quality control issues and customer service challenges. Toyota’s long-standing commitment to manufacturing excellence and customer satisfaction could attract consumers who prioritize reliability and peace of mind.
However, Toyota must address the criticism regarding the delay in its BEV rollout program. Rival automakers, including VW Group, have made significant strides in the EV market, leaving Toyota playing catch-up. The company’s promise of improved electric range, captivating styling, and driving performance is a step in the right direction. Toyota needs to deliver on these promises and demonstrate that they can compete with Tesla in terms of technological advancements and consumer appeal.
In conclusion, Toyota’s General Shareholder’s Meeting shed light on the company’s approach to beating Tesla. While it may be challenging for Toyota to surpass Tesla’s dominance in the EV market, their multi-pathway decarbonization strategy, commitment to quality, and promises of improved BEVs show that they are determined to compete. Only time will tell if Toyota can catch up and win the battle against Tesla, but their efforts should not be underestimated.