Is Toyota right in holding back EVs in Oz?
By Byron Mathioudakis · 06 Nov 2023
Toyota, it seems, has raised a ruckus over its electric vehicle (EV) policy in Australia this week, criticised in some quarters for dragging its feet on EV availability and consequently – as the biggest carmaker – deliberately slowing down their uptake.Of the 12 best-selling brands in Australia year-to-date, Toyota joins the bottom performers Subaru, Isuzu Ute and Volkswagen in failing to offer an EV at any time in this market.Additionally, the local launch of the company’s long-promised bZ4X electric SUV is months if not years behind original expectations, while arch rival Nissan is preparing its third-generation EV with the competing Ariya.But is this flak fair, when considering the extensive research and development going on behind the scenes at the Japanese automotive giant?Earlier this year, Toyota announced that it is well advanced in next-generation EV batteries in conjunction with expert partners like Panasonic, due out from 2026 that will likely lead the industry globally in terms of range, charging speeds, quality, reliability, durability and – most vitally – improved affordability.Expected to use the much-vaunted solid-state battery tech that reportedly employ far-fewer precious earth resources like lithium-ion, these EVs are promising distances of up to 1000km between refills, and with recharges taking a fraction of the time while costing upwards of 20 per cent less than today’s equivalents.Plus, before then, two more Toyota EVs based on the new bZ4X will be launched in Australia, with the bZ3 sedan likely to be one, while after that, a raft of them will come brandishing the fresh battery tech and architecture, as strongly hinted by the Japan Mobility Show concepts such as the LandCruiser Se EV, EPU dual-cab ute, FT-SE sports car and FT-3E medium-sized SUV/crossover. All are electric.This is game-changing stuff. But 2026 is three years away (and longer if past form bringing vehicles to this market in a timely manner is any indication), while increasingly more Australians want an EV now.Yet there-in lies the problem, according to Toyota Australia Vice President Sales, Marketing and Franchise Operations, Sean Hanley, since even today’s better batteries that provide 500km-plus of range are just not good enough for most Australians, many who require their vehicles for long-distance driving and/or towing capabilities – and especially those who live in rural and/or remote areas.“The technology is just not there yet,” Hanley said, speaking to Australian journalists at the Japan Mobility Show in Tokyo last month.“We know battery EVs like the bZ4X will play an increasingly important role in cutting carbon. But we also know it will take many years before we have enough battery material and renewable energy to support mass adoption of (battery) EVs.”Suggesting that Toyota’s biggest sales successes hinge substantially on range and convenience, Hanley rejects the notion that waiting on next-level extended battery range would only serve the few in Australia.“We would totally disagree with that,” he believes, vehemently defending Toyota’s perceived lack of urgency in bringing EVs to market.“When you look at the landscape, you look at the mining industry, the agriculture industry, when you look at the what we fondly know and respect as the “Grey Nomad” population – when you look at the lifestyle and leisure that Australians enjoy – we would say that that's a huge market.“Have a look at LandCruiser sales, have a look at HiLux sales, have a look at Prado sales, move into all of the SUVs. I'm telling you now. There's a big range of people, the silent majority of Australians who aren't necessarily speaking, who require these vehicles.“So therefore, whilst electrification is accelerating, there's no doubt about that. There is still a huge market of people that do need their 700km or 800km range, who do want to tow three and a half tonnes and do not want to have the fear of whether they're going to get home or not because there's not a battery station or a car capable, that's affordable for them.”Hanley added that EVs are just one part of what he refers to as Toyota’s “multi-pathway strategy to decarbonisation”, that starts with more efficient internal combustion engines (ICE) in various forms of electrification, including petrol-electric series-parallel hybrid as pioneered by the Prius, and plug-in hybrids (PHEV), and tops out with hydrogen-powered EVs, as per the Mirai fuel-cell EV (FCEV).“We've made our position in Australia very clear that by 2025 that 50 per cent-plus of our sales will be some form of electrification,” he reiterated.“We have a diverse strategy, as we've said, a multi-pronged approach to technology… and nothing's altered (after Toyota’s broad future EV concept rollout at the Japan Mobility Show). That could be hybrid. That could be plug-in hybrid, that could be fuel-cell electric, that could be battery EV.“And hydrogen, I still think, has a big future in our market and certainly the world.”Finally, Hanley reckons Toyota would not serve its customer base well if it put all of its electrification eggs in one basket."What you're seeing today is a car company that's not behind,” he claims. “You’re seeing a car company has put a lot of investment, a lot of research and development into electric cars.“But you're also seeing a car company that's being honest with the market, saying that not every part of the globe can do EV only. Not every part of the globe. It's a part of the solution to carbon neutrality, but it’s only one piece of the puzzle.“And if you only invest in a single way of getting to carbon neutrality, then you're essentially ignoring all the other wonderful opportunities and technologies that exist in hydrogen fuel cell, synthetic fuels, it just goes on and on and on.“So, therefore what you're seeing today is a car company that is progressive, but it's also real about its future.”Do you agree with Toyota’s take on EVs for Australia?Please let us know in the comments below.