Toyota shifts gears and cuts EV sales projections amid soaring profits

Like other automakers in recent days, Toyota has revised its EV sales projections for this  year. After initially aiming to sell 202,000 EVs it has now adjusted its target to 123,000 units, a 39% reduction. However, this shift shouldn’t come as a surprise, given Toyota’s reluctance to embrace EVs.

Instead the automaker has decided to focus on internal combustion and hybrid models, as evidenced by their shift in strategy. The company is now looking to increase sales of traditional hybrids, with a goal of selling 3.6 million units globally this fiscal year, up from the initial target of 3.5 million. Additionally, the company anticipates total electrified vehicle sales, which includes battery electric vehicles (BEVs), hybrids, plug-in hybrids, and hydrogen fuel cell vehicles, to reach 3.9 million units, marking a 42 percent increase from the previous fiscal year. (via Automotive News)

With only two mass-market BEVs, the Toyota bZ4X and the Lexus RZ SUV, the vast majority of that figure will be hybrids, plug-in hybrids, and hydrogen fuel cell vehicles.

However, while other automakers are cutting back on EV related investments due to huge financial losses, Toyota is trimming its EV sales targets while on the path to achieving massive profits. The company previously projected an operating profit of 3 trillion yen ($20.1 billion), but its latest financial report has raised that to 4.5 trillion yen ($30.15 billion).

According to Toyota’s chief financial officer, Yoichi Miyazaki, the success of hybrids has laid a solid financial foundation for the company’s upcoming EVs. Toyota has ambitious plans to launch 10 new EVs by 2026, along with solid-state batteries capable of providing over 621 miles (1,000km) of range on a single charge.

Also this week Ford announced a delay in over $12 billion in EV-related investments, while General Motors delayed production on its future EVs to cut costs, while also backing out of its $5 billion deal with Honda to jointly develop affordable EVs and .

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