In a recent interview with Autocar, a Toyota executive revealed that an entry-level electric vehicle (EV) from the automaker is unlikely in the near future due to persistently high battery costs. While some automakers are introducing small, affordable EVs in the European market, Toyota, for now, is steering clear of such plans.
Andrea Carlucci, Toyota’s European development boss, emphasized that the “premium attached to electric cars” remains a significant barrier until there is a substantial shift in battery costs. Carlucci acknowledged that an affordable EV priced around 25,000 euros (approximately $27,000) would be desirable for Toyota’s lineup but deemed it unfeasible in the current market scenario. Notably, this won’t be part of the five new electric SUVs Toyota intends to launch by 2026.
Among the slated models is a compact electric SUV for Europe, based on the Urban SUV Concept showcased in late 2023. Carlucci disclosed that this model would have a starting price of around 32,000 euros ($35,000). Toyota has also introduced a C-HR plug-in hybrid in the European market.
Carlucci’s stance on the affordability of EVs in Europe echoes recent statements by Honda’s global CEO, who highlighted the necessity of a technological breakthrough, like solid-state batteries, to make electric equivalents of signature models financially viable.
While Toyota’s European strategy leans towards cost challenges, its approach in the U.S. appears different. In 2021, the automaker expressed its intent to prioritize affordability over range in its U.S. EV plans. Currently, Toyota offers a range of affordable, high-mpg vehicles with all-wheel drive, a niche that has seen robust sales. However, the only electric vehicle in Toyota’s U.S. lineup is the bZ4X, starting at $44,420 for the 2024 model year.