The Toyota Motor logo will be displayed at a company’s dealership in Tokyo on February 6, 2019.
Kazuhiro Nogi | AFP | Getty Images
During a Toyota engine Call for prizes On Friday, executives answered questions about how they intend to compete in the growing electric vehicle space and took a look at Tesla’s sky-high rating.
Toyota President Akio Toyoda admitted that Tesla’s worth around $ 400 billion is sky-high, outperforming all seven Japanese automakers combined.
He also said Toyota could learn from Tesla’s success with investors and its business model, which includes revenues from electric vehicles, regulatory credits, software and renewable energy products.
But the CEO compared Tesla’s business to a restaurant that is still promoting its recipes, while Toyota looks more like a restaurant that already serves a large number of customers.
“I hesitate to say – Tesla’s business is if you want to use the analogy, like that of a kitchen and a cook,” Toyoda said.
“You haven’t started a real business in the real world. You are trying to swap recipes. The chef says, ‘Our recipe will become the world’s standard in the future!’ At Toyota we have a real kitchen and a real chef and we already create the dishes. There are customers who are very picky about what they like to eat, who sit in front of us and are already eating our dishes.
Note that his company makes and sells a much higher volume and variety of cars than Tesla, and was referring to the 100 million Toyota vehicles owned by individuals, fleets, and other customers today. Toyota expects to sell around 7.5 million vehicles during fiscal year 2021, which began April 1, 2020.
Tesla expects to sell 500,000 electric vehicles in 2020.
Toyoda called Toyota a “full menu offering,” referring to the company’s mix of internal combustion, hybrid, battery-only and fuel cell electric vehicles.
Toyota popularized hybrid electric vehicles with its Prius line, which began sales in 1997. Also, very few battery-electric RAV-4s were made, including a second generation electric RAV-4 made in partnership with Tesla.
But Toyota didn’t commit to producing a large volume of all-battery electric vehicles until late last year. At that point, the company announced a Joint venture With one of Tesla’s biggest competitors on the world stage, the electric vehicle maker BYD turned in China.
Although Toyota’s earnings declined in the most recent quarter, the company saw sales rebound 3% higher than the broader auto industry, which rebounded after the pandemic dampened sales in China in the first half of the calendar year.
With signs of recovery on the horizon, Toyota has also more than doubled its full-year guidance. The company now expects operating profit of 1.3 trillion yen, or approximately $ 12.6 billion for the year ended March 2021. (Previously, it expected profits of 500 billion yen.)