Toyota’s EV Woes: Struggling To Find The Fast Lane In Electric Mobility

Toyota Motor Corporation, the world’s largest automaker by production volume, finds itself at a critical juncture in the global automotive industry. Despite a commendable first-half operating income of ¥2.464 trillion for fiscal 2025 and a full-year forecast of ¥4.3 trillion, the company’s electrification strategy—or lack thereof—remains a contentious issue. While Toyota has mastered the art of hybrid and internal combustion engine (ICE) vehicles, it continues to lag significantly behind competitors like Tesla and BYD in the electric vehicle (EV) space. As EV adoption accelerates globally, Toyota’s commitment to a “multi-pathway strategy” encompassing hybrids, hydrogen, and ICE vehicles is being increasingly scrutinized. This article delves into four key drivers that underscore Toyota’s challenges in the EV segment, offering a cautious perspective on the company’s future.