Discourse with Senior Vice President Terashi (4): "By the year 2050, the focus won't center on BEVs or FCEVs, but rather on Toyota itself"

In a series of interviews published on "THE PAGE" in March 2021, Naoto Ikeda, a motor journalist, sat down with Shigeki Terashi, Executive Vice President of Toyota, to discuss the automaker's plans for the future.

Toyota currently has only one type of Fuel Cell (FC) stack, which is installed in the Mirai. However, the application range of Fuel Cell Electric Vehicles (FCEVs) is expanding, and the company is keeping an eye on liquid hydrogen as a potential energy source for the near future.

The need to reduce CO emissions to one-fifth of current levels by 2050 is a pressing issue, and society may have to rely on electric vehicles (EVs) and FCEVs to meet this goal. In response, Toyota is developing its future electrification strategy by focusing on a multi-technology approach. The company emphasizes hybrid vehicles alongside electric and hydrogen ones, rather than solely pushing battery electric vehicles (BEVs).

Toyota plans to produce battery electric vehicles in Europe starting around 2025, investing about 680 million euros in a Czech factory expansion to build a new electric model and its battery. This strategy aligns with complying with stricter Zero-Emission Vehicle (ZEV) regulations in North America by offering a mix of technologies tailored to market requirements rather than exclusively BEVs.

Regulations on automobile exhaust gas originating in California require makers whose volume exceeds a certain number of vehicles to sell a certain percentage of vehicles that meet the state's ZEV regulations, with failure to comply resulting in a large fine or buying a surplus (credit) from a maker who has met the requirements of the regulations. The ZEV regulations in North America have become stricter since 2018.

The roadmap for regulations up to 2025 indicates that the percentage of environmentally friendly vehicles, including FCEVs and ZEVs, must increase each year. In 2018, 4.5% of cars sold by a maker should be environmentally friendly, with a maximum of 2.5% being Fuel Efficient Vehicles (FEVs) and 2.0% being Zero-Emission Vehicles (ZEVs). By 2022, this requirement increases to 14.5%, with a maximum of 4.5% being FEVs and 10.0% being ZEVs. By 2025, the requirement increases to 22.0%, with a maximum of 6.0% being FEVs and 16.0% being ZEVs.

As of 2023, the requirement increases to 17.0%, with a maximum of 5.0% being FEVs and 12.0% being ZEVs. By 2024, the requirement increases to 19.5%, with a maximum of 5.5% being FEVs and 14.0% being ZEVs.

It is important to note that there is no point in putting BEVs and FCEVs on opposite axes. Both technologies have their advantages and disadvantages, and Toyota is committed to adapting to market demand and not forcing electric vehicles where there is no demand, particularly targeting markets such as Scandinavia for EV sales.

In addition to its electrification efforts, Toyota is also embarking on a project exploring the moon, aiming to combine "the virtual with reality" and bring earth technology to the moon. The energy infrastructure in the future, 30 years from now, will gradually change in compliance with the Paris Agreement, aiming to reduce greenhouse gas emissions by 80 percent by 2050.

In conclusion, Toyota is committed to reducing its carbon footprint and meeting the stricter ZEV regulations in North America by offering a mix of technologies tailored to market requirements rather than exclusively BEVs. The company is also exploring the potential of FCEVs and liquid hydrogen, and is committed to adapting to market demand and not forcing electric vehicles where there is no demand.