In the Race to Electrification, Lexus and Toyota are Taking a Different Approach
Despite many companies setting goals to become fully electric this decade, Lexus is exploring multiple technologies.
The world’s biggest automakers have been proudly announcing their eventual transition to electrifying their entire lineup. The pressure to dump the internal combustion engine is at an all-time high. Though, Lexus, looking at the numbers objectively as opposed to jumping on the bandwagon, says that the best approach toward a more efficient future is a cautious one. Instead of jumping in with both feet, Toyota and Lexus believe it’s better to increase variety.
Akio Toyoda, President and CEO of Toyota, said recently that the speed in which automakers are expecting to offer an all-electric lineup isn’t realistic. With California and New York banning the sale of new internal combustion engines by 2035, the pressure to conform is suffocating. Realistically, Toyoda says, it would be wiser to invest more money in BEVs, hybrids, PHEVs, AND hydrogen fuel cell vehicles. “The whole world will not adapt at the same time, so we need multiple solutions,” noted Toyoda.
Toyota confirmed that the Japanese powerhouse will invest north of $70 million in electrification over the next nine years, and $35 billion to BEVs. Lexus and Toyota both feel like it’s wiser to appeal to multiple audiences, especially as not all of their audiences can keep up. By offering one of everything, Lexus and Toyota remain a company that has something for everyone as opposed to only offering one kind of product. Additionally, Toyoda expressed concerns about the availability of key materials like lithium and nickel, if all manufacturers are pining for it.
One of Everything, Please!
By offering multiple platforms and options, it keeps both companies relevant – and that strategy is proving effective. Currently, Toyota and Lexus offer 21 electrified vehicle options combined — which is the most of any other automaker currently. At the end of September of this year, BEVs, PHEVs, EVs, and hybrids made up one-quarter of total sales. For September alone, both companies sold 35,419 vehicles, with 20% of them being alternatives to internal combustion engines. For the third quarter of the year, Toyota reported 526,017 sales, with 111,713 of those being EVs.
For Lexus specifically, the best-selling hybrid of September was the NX hybrid and plug-in hybrid. All available hybrid sales were up, showing that the demand for hybrids are increasing – showing a greater need for them. Thus proving the point that there isn’t yet a need for a total EV lineup.
“While our teams and dealers continue to face on-going challenges, taking care of our customers and their needs remains a top priority,” said Jack Hollis, executive vice president, Sales, TMNA. “Through the end of 2022, customers can expect even more electrified options in showrooms from both brands including four new Corolla hybrid grades, the all-new Toyota Crown with two hybrid options, and the all-new Lexus RX with available hybrid.”
Photos: Lexus
