TOKYO – Although Toyota expects record growth this fiscal year, it’s cutting its EV sales forecast by nearly 40%. In Toyota’s latest questionable strategy shift, the company will lean into hybrids to “avoid the price competition” in the EV market.
Toyota released its Q2 2024 fiscal results Wednesday, showing growth across the board. Through the first half of the fiscal year, Toyota (and Lexus) sales reached 4.7 million, up 114% from last year.
The automaker recorded sales growth across all regions. Electrified vehicle sales accounted for 35.3% of total sales. However, HEVs carried the load with 1.7 million sold compared to only 59,000 battery electric vehicles.
Despite issuing new guidance, Toyota expects a lower share of EV sales. The company still expects to sell 9.6 million vehicles this fiscal year but with a significantly lower share of electric cars.
Toyota cut its EV sales forecast from an expected 202,000 to only 123,000. That’s almost a 40% difference.
The company said the lower forecast is “reflecting the decline in the Chinese market.” Toyota’s CFO Yoichi Miyazaki mentioned on the company’s earnings call that the adjustment was due to the intensifying EV price war in China (via Automotive News).
