Investment Plans Unveiled by Toyota's Tech Leader: Insight into Extensive Investment Strategy

Toyota Embraces All-Round Electrification Strategy

At the 2021 Ordinary General Shareholders' Meeting held on June 16, Toyota's Chief Technology Officer, Masahiko Maeda, outlined the company's all-round electrification strategy. The meeting, which lasted for 1 hour and 49 minutes, saw a focus on this strategy, with questions about its effectiveness and affordability.

Maeda highlighted digitalization and the Toyota Production System (TPS) as key initiatives in Toyota's electrification strategy. Traditionally practiced at production sites, an initiative to apply TPS in non-production workplaces has been underway. This move is aimed at improving efficiency in ever-increasing research and development efforts.

Toyota's all-round electrification strategy includes the development of hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), fuel cell electric vehicles (FCEVs), battery electric vehicles (BEVs), and other new options like hydrogen-powered engine vehicles. The company believes in providing customers not only with BEVs but also a variety of other options, such as HEVs, PHEVs, FCEVs, and hydrogen-fueled engines.

This diverse approach reflects Toyota's long-standing relationship with its customers and a focus on customer convenience. The company plans to offer a full range of electric vehicles based on a flexible strategy that prioritizes actual customer demand over regulatory pressure. Toyota will produce electric cars primarily in markets where there is real interest, such as Scandinavia, while focusing on other powertrains elsewhere.

President Toyoda encouraged office positions to practice TPS, promoting it not only at production sites but also at development sites. The strength of TPS continues to play a key role in developing future technology and inching closer to the goal of expanding paths to achieving carbon neutrality.

In response to a shareholder's question about the all-round electrification strategy, Maeda mentioned the importance of digitization and TPS in organizing information flows and improving efficiency. He also stated that shortening lead time enables flexibility in the face of drastic changes such as customer preference and regulations.

Toyota reduced development lead time for the "bZ4X", an all-new BEV jointly developed with Subaru, by 30% compared to usual Toyota vehicles. This reduction is part of Toyota's commitment to targeting a 10% more reduction for future new BEVs in development lead time.

Interestingly, during the meeting, Akio, who was chairing the meeting, responded to only 2 of the 11 questions himself, compared to previous years where he would respond to more questions or have others respond first. This shift in approach could signal a new era of transparency and openness at Toyota.

Toyota launched the world's first mass-produced hybrid electric vehicle, the "Prius", back in 1997. Since then, the company has continued to innovate and lead the way in eco-friendly vehicle technology. Toyota's stance on environmental technology development is that eco-friendly vehicles are only meaningful if they achieve widespread use and contribute to CO2 reductions.

Investment Plans Unveiled by Toyota's Tech Leader: Insight into Extensive Investment Strategy