Last update comes ahead of Toyota's first battery-powered electric car cautiously unveiled as rivals rise The 2023 Toyota bZ4X all-electric SUV is seen at the 2021 Los Angeles Auto Show in Los Angeles, California, U.S., on November 17, 2021. REUTERS/Mike Black.
12345 TOKYO, May 12 (Reuters) - Toyota Motor Corp (7203.T) will launch its first battery-powered electric car for rental in Japan on Thursday, a move the automaker says aims to address driver concerns about batteries. Longevity and resale value concerns dissipated, but caused a stir among analysts. In Toyota's home market, gasoline-electric hybrids are more popular than electric vehicles (EVs), which account for just 1% of passenger car sales in Japan. Still, foreign automakers such as Tesla Inc (TSLA.O ) are clearly making inroads into fast-growing cities such as Tokyo.
Toyota will lease the bZ4X SUV for $39,000 for the first four years, with additional fees for cancellations within the first 48 months. However, CLSA analyst Christopher Richter believes that EV acceptance in Japan is slow, but will change and Toyota may lose market share if it focuses solely on leasing rather than purchasing
"According to Christopher Richter, a CLSA analyst, making it harder to buy a vehicle is not a good strategy. He also expressed that he is not a fan of this approach and believes that Toyota may be taking the domestic market for granted. In December,
Toyota announced plans to invest 8 trillion yen ($62 billion) in electrifying its cars by 2030. The automaker is expected to lease 5,000 SUVs in the current financial year, which is around the same number of electric vehicles that Tesla sold in Japan last year. The bZ4X SUV has already begun pre-orders in some European countries and will be available in other markets later this year. However, a Toyota spokesperson has not yet announced when the cars will be sold in Japan."
In Europe, electric vehicles (EVs) have become increasingly popular through lease programs offered by employers, and Toyota may adopt a similar strategy to popularize EVs in Japan, according to Seiji Sugiura, a senior analyst at Tokai Tokyo Research Institute. He believes that by offering leases, Toyota will be able to attract more customers and help ease the transition to EVs.
Shinya Kotera, president of KINTO, the Toyota unit that handles leases, acknowledged that first-time EV buyers may have concerns about battery life and trade-in value. He said, "Our role is to dispel anxiety about EVs." Kotera believes that by addressing these concerns and providing a clear understanding of the benefits of EVs, Toyota can attract more customers to the technology.
According to data from the industry, battery EV imports have increased almost threefold to a record 8,610 vehicles in 2021. Analysts estimate that roughly 60% of these imports were Teslas. This highlights the growing demand for EVs in Japan and the increasing competition in the market.
Despite the growing popularity of electric vehicles (EVs) around the world, Japanese automakers remain cautious about fully transitioning to all-electric vehicles. This is evident in Toyota's approach, despite investing more to boost its battery electric vehicle lineup, the company remains committed to hybrids and hydrogen-powered vehicles. This dual approach allows Toyota to hedge its bets and not put all its eggs in one basket, in case the market for EVs does not take off as expected.
Nissan, which pioneered the mass-market EV with the Leaf in 2010, is also taking a cautious approach. The company will introduce its second battery-electric SUV, the Ariya, on Thursday. The Ariya is expected to cost $41,500 without government subsidies. This indicates that while Nissan is expanding its EV lineup, it is still taking a measured approach.
It's worth noting that Japan's automotive industry has long been dominated by gasoline vehicles, and the shift to EVs is not an easy one. The country has a robust infrastructure in place for gasoline vehicles, and it will take time and effort to build an equivalent infrastructure for EVs. Additionally, the cost of batteries is still relatively high, making EVs more expensive than gasoline vehicles.
Despite these challenges, it's clear that the global trend is moving towards EVs, and Japanese automakers will need to adapt to remain competitive. It's likely that we will see more investment in EVs from Japanese automakers in the coming years as the technology continues to improve and costs come down. However, for now, it seems that Japanese automakers are taking a wait-and-see approach to fully embracing EVs.
Honda Motor Co. has announced plans to roll out 30 electric vehicle (EV) models globally by the year 2030. This announcement aligns with the growing trend of automakers shifting towards EVs in response to increasing demand and stricter emissions regulations. Honda is the latest automaker to set ambitious goals for the expansion of their EV lineup.
The move towards EVs also comes with the current exchange rate of 1 dollar is 129.7000 yen, which could have an impact on the pricing and affordability of EVs for customers.
The shift towards EVs is a significant one for Honda, as the company has historically focused on gasoline and hybrid vehicles. However, with the increasing demand for EVs, Honda recognizes the need to adapt and stay competitive in the market.
This news was reported by Satoshi Sugiyama and Maki Shiraki, and edited by David Dolan and Kenneth Maxwell.
In addition to Honda's plan, South Korean EV battery maker SK On seeks $3.1 billion in pre-IPO funding, as reported by a local newspaper. This shows the growing investments in EV industry not only from automaker but also from battery maker. It's a clear indication of the growing interest and investments in the EV market, as more and more companies look to capitalize on the growing demand for EVs.
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