Toyota Has Finally Hit The Accelerator On Its EV Journey

Last week, Toyota Motor TM revelaed its second quarter deliveries, joining Tesla Inc TSLA, General Motors GM and Ford Motor F. In a nutshell, Toyota has something to brag about as its EV sales quadrupled in the second quarter.

Second Quarter Sales

In the U.S. Toyota sold 621,549 vehicles, which is a rise of 9.2 % YoY and it owes it to EVs. In the second quarter, Toyota sold almost 250,000 hybrid and electric models, which represents an even more impressive YoY rise of 63%, representing almost 40% of the group's total volume. EVs and PHEVs are undoubtedly Toyota’s fastest-growing segment.

Toyota’s current offering hybrids, plug-in hybrids and a fuel-cell electric vehicle consists of 29 electrified models, which is two more compared to the previous quarter. 

The Toyota Group group sold 24,266 plug-in electric cars, which translates to a 112% YoY increase, with these vehicles making 3.9% of the total volume, rising from last year’s 2.0%. The Toyota brand enjoyed a 91% YoY boost as it reported 17,589 plug-in sales, while its hybrid star, Lexus, almost tripled its volume that grew 194% to 6,677.

Toyota definitely stepped on the accelerator pedal in the EV race.

The group's all-electric car sales increased by 301% YoY to 11,607 units. For the first time in history, 1.9% of all Toyota Motor North America sales were all-electric, rising from last year’s comparable quarter when they made 0.5%.During the first half of 2024, Toyota Group  sold 42,098 plug-ins, which is double compared to the first half of 2023.

Meanwhile, the EV king, Tesla is reflecting a softening EV demand.

Tesla revealed its global deliveries contracted by 4.8% in the second quarter to around 444,000 EVs. This is the second consecutive quarter that Tesla is reporting a volume drop, after reporting an 8.5% YoY decline in the first quarter. But fortunately for Tesla, the latest fall was milder than what analysts expected.

Long gone are the days that Tesla the EV market almost to itself. With intensified competition from BYD Company Limited BYDDY and even newcomers like Nio Inc NIO, Tesla is forced to fight for its place under the EV sun. In addition, legacy automakers like Toyota, GM and Ford are determined to catch up. Although the Chinese brands succeeded to undercut Tesla on price in their home market, legacy automakers undoubtedly have their know-how on their side in building their competitive advantage on. By the looks of it, Toyota has finally picked up the pace, so the EV race is about to get even more interesting.

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