Toyota proves once again why it is one of the industry leaders. Under the late chairman Akio Toyoda, the company took a cautious approach to powertrain diversification, a decision that is now paying off. While other automakers are betting exclusively on electric vehicles, Toyota continues to invest in hybrid technology, a move that is proving to be extremely profitable.
Toyota has announced a significant cost reduction for its hybrid powertrain, down to just one-sixth the original price of the Prius. This cost reduction comes at an opportune time, given the slowdown in electric vehicle sales. With a carefully planned strategy, Toyota's market capitalization has grown impressively, surpassing half the market value of its rival Tesla, compared to a quarter in the past.
Toyota's new CEO recently emphasized that while the company sees a global electric vehicle penetration rate of no more than 30% in the near future, it is not neglecting the importance and efficiency of hybrid vehicles. In fact, last month Toyota became the first Japanese company to break the 60 trillion yen mark in market capitalization with a 31 percent increase in hybrid sales, which now account for 60 percent of its market.
Toyota Announces an IMPORTANT Partnership with Huawei for Car Production
Toyota is not standing still. The company is in the process of adapting the same legendary frugality to the production of electric vehicles. It is preparing to introduce new models to the market in the coming years, including vehicles equipped with innovative solid-state batteries. Moreover, Toyota has implemented a gigacasting assembly platform, similar to that used by Tesla, which is 20% more efficient.
The partnership with Huawei plays a crucial role in this development. Toyota plans to use advanced self-driving electric vehicle kit developed by Huawei but powered by Momenta software and high-resolution visual maps to navigate global regulatory hurdles. This collaboration between Toyota and Huawei underscores the commitment of both companies to innovate and define the future of mobility.
Further details on the advanced driver assistance technologies will be revealed by Toyota at the 2024 China Auto Show, which starts on April 25. With such a portfolio of innovations and strategic partnerships, Toyota and Huawei are set to dominate the automotive market for years to come.
