E-cars will never dominate market, says Toyota

ELECTRIC cars will never account for more than a third of the market and consumers should not be forced to buy them, the boss of Toyota has said.

Akio Toyoda, chairman of the world’s biggest carmaker by sales, said electric vehicles (EVS) should not be developed to the exclusion of other technologies such as hybrid and hydrogen-powered cars that his company has focused on.

Speaking to employees in a question and answer session, Mr Toyoda called for a “multi-pathway approach”, adding: “The enemy is CO2”.

He believes battery EVS will only secure a maximum of 30 per cent of the market – less than double their current share in the UK – with the remaining 70 per cent taken by fuel cell EVS, hybrids and hydrogen cars. Mr Toyoda said: “Customers – not regulations or politics – should make that decision.” He argued that EVS have limited appeal as one billion people globally still have no electricity, while the vehicles are expensive and need charging infrastructure.

Mr Toyoda, whose grandfather founded the company, also challenged claims that Toyota had fallen behind rivals in EV development. He insisted it was right that the carmaker was focusing on alternative technologies but admitted it was hard to “fight alone”.

The chairman also pointed to Toyota’s recent announcement that it was working on a new combustion engine, saying it was important to give engine factory workers a role in the green transition. However, he speculated that banks might soon stop lending money to companies that continue to build engines powered by fossil fuels.

Touted for years by Mr Toyoda, the “multi-pathway approach” argues that customers should be able to pick whatever car type fits their needs and that the shift to EVS will not be as rapid as some have predicted.