Toyota EV in the US Market
The automotive company has been an industry leader for years, as it was the first automotive business to introduce a mass-produced hybrid vehicle. The recent announcement from the business has big plans for the future.
The company will introduce three new electric vehicles this year in the US — two (battery electric vehicles (BEV) and one plug-in hybrid electric vehicle (PHEV). By 2025, the goal of the business is to have 40% of new vehicle sales be EV models, and by 2030, the company hopes that percentage increases to 70%.
Gill Priatt, chief scientist of the business and CEO of the company's research institute, said, “We believe the fastest way to lower greenhouse gases in the transportation sector is to offer drivers lower carbon choices that meet their needs.” He added, “At every price point and with multiple powertrains, we can put more people in cleaner automobiles across North America to have the greatest near-term impact on total carbon emissions.”
The EV Market
The trend for EV has steadily risen in the last five years, despite a slight dip early in 2020. This dip can be attributed to the early shutdowns of the COVID-19 pandemic, which forced stay-at-home restrictions and social distancing. Despite this, Startup Savant reported earlier last year that major car manufacturers pledged to invest $225 billion in developing new electric vehicles.
In 2019, the EV market value was roughly $162.34 billion, with Europe and Asia-Pacific accounting for the majority of the EV market share, and North America only accounting for 15% of it. Furthermore, the global EV market is expected to reach $802.81 billion by 2027 — a CAGR of 22.6%.
The main segments of the EV industry are BEVs and PHEVs. With these two EV models, automotive companies are able to research ways to lower carbon emissions. The Department of Energy stated that while it is complex to calculate the exact amount of emissions from electric vehicles, it is still substantially less than gasoline or diesel-powered automotives because electricity requires less emission generation.
That said, the challenge of owning an electric vehicle, and for businesses to manufacture them, is to own personal charging stations or develop public charging station locations, which provides its own set of obstacles to work through. In addition, a study released by the National Bureau of Economic research found that in the subject homes in California (as California has the largest EV market), electricity consumption increased. However, the same study revealed that people traveled much less, therefore reducing the number of carbon emissions.
Now with automotive industry leader Toyota entering the playing field in the American market, the $260.07 billion business will help accelerate EV usage in the country and continue in the mission to reduce the carbon footprint.
With the EV market growing at a rapid pace, it will be interesting to see the impact the new EV models from Toyota will have in the US automotive market.
About the Author
McKenzie Carpenter is a graduate of Central Michigan University with a B.A.A. in Integrative Public Relations and French. McKenzie has previously worked for small businesses and nonprofit organizations.