Toyota Thinks Conventional Hybrids Are More Important Than EVs And PHEVs

Toyota has been late to jump on the electric vehicle bandwagon and it appears the company is still hesitant despite announcing plans to offer an electric version of the C-HR / IZOA in China.

Speaking with Wards Auto, Toyota’s executive general manager of their powertrain division said “We believe that hybrids will come ahead of full electrics” although the company recognizes that some companies are going straight to EVs. Shizuo Abe went on to say “We believe that our biggest weapon for meeting fuel-efficiency and CO2 regulations, not just in Europe but globally, will continue to be hybrids.”

Speaking of the latter, Abe said Toyota expects sales of conventional hybrids to hit four million units in 2030. The company also has plans for plug-in hybrid and electric vehicles but Toyota only expects to sell “several hundred thousand” units in 2030.

Abe went on to say the biggest problem with electric vehicles is lithium-ion batteries because they’re expensive, large and heavy. He also noted their “deterioration characteristics” which is a reference to how the batteries lose capacity as they age and complete hundreds of charging cycles.

Abe went on to estimate a Prius-sized electric vehicle would require a 40 kWh lithium-ion battery to have a range of around 250 miles (402 km). He suggested the battery alone would cost between $7,203 – $10,805 and even if battery prices were cut in half by 2025, it still doesn’t mean electric vehicles would appeal to consumers.

While Abe doesn’t like lithium-ion batteries, he’s much more optimistic about solid state batteries and noted Toyota wants to produce them as “soon as possible.” While rumors suggested a solid state EV could arrive early next decade, Abe seemed to dismiss the idea as he said 2030 is a “more realistic timeframe.”