That number, however, comes with a huge caveat: It’s for “electrified” vehicles, as are some of the other makers’ commitments as well.
That Word Does Not Mean What You Think It Means
Contrary to much media interpretation over the years, “electrification” doesn’t mean electric cars. It means cars with an electric motor somewhere inside the drivetrain—of which the majority will likely be the regular Toyota hybrids we’ve seen for 20 years now or their plug-in hybrid variants.
Still, Toyota specified it will spend $35 billion on battery-electric vehicles alone. That represents a substantial scale-up of its previous ambitions for EVs, even if it puts the company only neck-and-neck with GM. Both remain considerably behind VW Group, which has put more funding toward EVs than any other major maker—and is thus making the biggest and riskiest bet on its future.
Toyota’s commitment is notable, however, because the company has been the largest automaker fighting what many now see as an inevitable transition from gasoline engines to battery-powered vehicles. It is finally a recognition that EVs are going to be a major part of most of its markets, at varying rates, and that it will happen this decade.
Toyoda’s presentation was the latest of a few plans that increased EV production over the next six years. It reiterated themes the company stressed hard during the November U.S. media debut of the 2022 Toyota bZ4X electric SUV: “It is difficult to make everyone happy with a one-size-fits-all option,” Toyoda said (in translation), so the company intends to offer as many lower-carbon options as possible globally. That means hybrids first, plug-in hybrids second, pure EVs third, and, of course, hydrogen fuel-cell vehicles as well.