Toyota non-committal on LCV electrification

TOYOTA has this week announced its future electrification strategy for Australia, a future noticeably bereft of any modernisation to its strong-selling light commercial vehicle range.

Speaking to GoAuto at the reveal of one of three Toyota EVs slated for arrival in Australia over the next three years, Toyota Australia vice president of sales, marketing and franchise operations, Sean Hanley, said the Japanese importer is committed to bringing electric vehicles to the local market.

The model roll-out will begin with the bZ4X later this year, with a smaller all-electric SUV to follow shortly thereafter.

However, and despite promising not to forget its rural buyers, Mr Hanley said there are currently no known plans to electrify Toyota’s strong-selling commercial vehicle range.

“It is a lot harder to electrify commercial vehicles to the point where they can do the same things as internal combustion powered vehicles – and it is a lot more expensive. It’s not impossible, but it takes a lot more time, thought and investment, especially in areas surrounding quality and safety,” he explained.

“We have clearly announced our intention in this country to have some form of electrification across all our models by 2030, so it is quite conceivable that over the next seven years that we may see a hybridised LandCruiser, for example, because all our models will have some form of electrification.

“But it is difficult to determine what form of electrification light commercial vehicles will receive at this point … because we have to make sure that when we do this, that we do it in a way that provides our customers with the type of vehicle that can do all the same things they do with their vehicle right now.”

Mr Hanley was quick to remind GoAuto News that Toyota remained committed to carbon neutrality globally but said Toyota would “not leave people behind on that journey” and that electrification of the HiLux, HiAce and LandCruiser (70 Series) range would likely take the hybridisation (HEV or PHEV) route before moving to an all-electric (BEV) driveline further down the track.

With hybrid vehicle sales now accounting for 31.5 per cent (72,815 units) of all Toyota vehicles sold in Australia – and with future sales expected to top 50 per cent (231,050 units) by 2025 – it seems hybridisation of the light commercial fleet is the more likely way forward.

“Hybrid for us is a known technology, and in the real-world, it is realistically a lot easier for us (to engineer into a light commercial vehicle). It also helps us to address the issue of meeting the requirements of the country in which we’re operating, and to do the things the customer wants,” he said.

“We are a competitive market, obviously. We are always trying to fulfil the needs of that market. But in the immediate term, we have to balance the proposition of moving forward without constraining the market. I also don’t believe that we should be governed by speed-to-market, or threats of speed-to-market.

“We have built up a lot of trust in this market over the last 50 years, so we need to get this once-in-a-lifetime transformation of mobility right. That is the most important name of the game. When we put our first BEV out on the road, it will meet Toyota customer’s expectations of quality, durability and reliability.”

Mr Hanley said he was not concerned that other rivals – including those from China – had beaten Toyota to the punch. Full electric light commercial offerings from LDV and hybridised four-wheel drives from GWM are already available on the market, and at a competitive price. Toyota may not have a rival in the space for at least another seven years, yet Mr Hanley says the importer is “not worried about being left behind”.

“We don’t feel that we’re going to be left behind. Our commitments mean we’re not going to leave people behind, especially in remote and rural areas. Sure, there are cars available right now that are cheaper, but they’re not appealing to the masses right now – they’re appealing to the few,” he insisted.

“Our strategy will see us cover all of the big-ticket bases, because if we don’t do that, we won’t survive. It doesn’t matter to us what our competitors are bringing in, what governments are doing. It matters that we can deliver on what the community expects from us, and to reduce our carbon footprint, and we believe we can show them (customers) a direction to get there.

Mr Hanley said Toyota dealers across the country were already demonstrating a clear commitment to electrification, the arrival of the bZ4X later this year prompting 232 dealership sites across the country to install fast chargers for Toyota customer use. The investment totals $20 million, of which $5 million has already been laid out.

“Toyota is committed to bringing electric vehicles to Australia. We know they will play an ever-increasing role in helping us – and our customers – get to net-zero carbon emissions,” he said.

“We also know it will take many years for the significant challenges facing EVs to be overcome, including battery material shortages, less-than-adequate charging infrastructure, and the ability to meet diverse customer requirements, such as towing.

“That is why it is just too early – and too risky for the environment and for our customers – to put all our eggs in the electric vehicle basket. Toyota will therefore maintain our strategy of deploying as many technologies as possible – battery EVs where they are most appropriate and other electrified powertrains where that makes the best use of scarce battery cells.”

Mr Hanley said that by the end of the decade, Toyota plans to release 30 new electric vehicles and lift global EV sales to 3.5 million units per annum, investing ¥8 trillion ($A87b) in the shift to zero-carbon vehicles over that period.

He said that Toyota would continue to evaluate EVs for the Australian market as they are made available.

“We are committed to offering an electrified version of every model in our range, excluding performance cars (by 2030),” he stated.

“Whether the technology is battery-electric, hybrid, fuel-cell, or some yet-to-be-discovered technology, Toyota is committed to making every effort to offer better mobility solutions for the people of Australia and the world.”