Toyota's Plan To Repeat Profits Through Electric Vehicles

JAKARTA - The Japanese auto giant brand, Toyota is getting stronger in working on electric cars in the future. What's more, the potential for profit is quite large.

The new Toyota president, Koji Sato announced a three-part plan to assist the company's strategy of profiting from the focus on selling electric vehicles as soon as possible.

Toyota under Sato's leadership plans to have an annual production capacity of 1.5 million units by 2025 and 3.5 million units for the next five years. This plan is clearly different from what was implemented by the previous President of Toyota, Akio Toyoda.

Reporting from Teslarati, Tuesday, April 25, 2023, Sato is now getting the task of realizing the mission which is a very significant change from the company that previously had not looked at the electric vehicle market.

Sato's first step was to introduce the Japanese manufacturer's first EV model to the global market, which has been done.

Then, the second step is to implement a number of changes to the upcoming EV series, which is likely to be Toyota will release a new face of the existing electric vehicle model.

Then, the last step is to introduce the latest platform for Toyota electric vehicles in 2026 by improving EV performance, increasing revenue figures, and realizing half the cost of EV development.

Toyota is known to be an expert in profit gain. Noted by Automotive News, Toyota is a leader in terms of profitability by consistently reaching a margin of 10 percent.

Nevertheless, Toyota is under pressure to move forward. What's more, the largest electric vehicle brand such as Tesla is leading by earning a margin of 20 percent.