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Recently, Toyota announced the de- ferment of the sales plan of intensively promoting its eQ electric cars. In the Chinese market, Shanghai General Motors and BYD respectively launched new electric cars and relevant promotion campaigns. It is said that the Shanghai government is going to issue detailed rules about subsidies for purchasers of electric cars. When electric cars can be available for ordinary people remains a mystery.
Toyota’s decision is based on its overestimation of the development of electric cars, but that does not mean that Toyota is going to give up the electric car business. According to Dong Changzheng, vice general manager of Toyota China, hybrid cars and electric cars are still the major development orientation of Toyota, which held onto its diversified technological route.
In truth, Toyota is rather conservative in the development of electric cars. Compared with General Motors and Nissan, Toyota always acts like a cautious boy when it comes to electric cars.
For this, Dong Yang, vice president of China Association of Automobile Industry, said that enterprises and scholars are now having a more reasonable attitude towards the development of electric cars. Presently, the promotion of electric cars is still shouldered by governments while how to put them into the market for ordinary consumers is still waiting for the answer.
Focused on Hybrid Cars
Toyota deferred the plan of massively selling electric cars highlights hybrid cars’ importance for its next-phase development. The technological research and development of electric cars, and its marketing, are not matured.
According to the data, Toyota’s eQ is a small car. It carries the new type of lithium-ion battery provided by Panasonic and can drive at 125km/h maximally. The sales price is 3.6 million Japanese yen or CNY 290 thousand. The annual sales volume is expected to be around 100 units.
It is known that this car was put into the market in 2010. Takeshi Uchiyamada, vice board chairman of Toyota, said that previously Toyota wanted to sell thousands of eQ cars per year. However, the drivable miles, cost and recharging time of eQ cannot meet the demand of the market, forcing Toyota to change the strategy two years later.
Now the market for eQ cars is limited in the US and Japan as Toyota found that only 100 units could be sold each year. Takeshi Uchiyamada admitted that Toyota’s present technology and ability of electric cars are not enough to meet the requirements of consumers, including the driving distance, product price and above all, the recharging time.
Then, hybrid cars become extremely important for Toyota’s strategy of new energy autos. It is known that the sales volume of hybrid cars of Toyota will be 1 million units around the globe. According to Toyota’s plan, the Japanese automaker is going to launch 21 types of hybrid cars by 2015, 14 of which are based on new designs.
Takeshi Uchiyamada said that each of Toyota’s existing model will have a hybrid version in the future. New technologies will be used. For example, Prius Hybrid can generate electric power by itself when braked, which can supplement the shortage of the oil engine. This is particularly useful when a driver drive his/her Prius Hybrid in big cities, where he/she always needs to brake.
Previously, it is believed that hybrid cars are just transitional products for electric cars and will not be widely accepted by consumers. But no one can tell how long the transitional period will last. The status quo is that hybrid cars more conform to market requirements before electric cars are accepted by consumers in terms of speculation and cost performance.
The Debatable Business Pattern
Cui Dongshu, deputy secretary-general of the National Association of Passenger Cars, said that Toyota’s mindset of developing electric cars is worth being borrowed and learned by Chinese companies.
“Toyota realized that it has made a mistake about electric cars at the beginning and quickly changed it,” Cui Dongshu said. “The dim outlook for the massive sale of electric cars made Toyota to put more energy into the development of hybrid cars.”
Presently, Toyota is the laureate of producing and selling the largest number of hybrid cars in the world. By the end of September, Toyota had already sold 4 million hybrid cars in the world. It has 18 kinds of hybrid passenger cars sold in 80 countries and regions, and the sales of hybrid cars took over 15% of its total sales.
But there are some experts holding opposite ideas. They think Toyota is very stupid to give up the plan of massively selling electric cars, especially in China. They take General Motors and Nissan for example: the former has already launched the extended Volt electric cars and introduced it into the Chinese market while the latter was trying to promote its Lead electric car.
Analysts believe that China owns quite a big market for electric cars and the Chinese domestic automakers are also strong players in this market without being overshadowed by foreign companies. Toyota’s withdrawal might mean more business opportunities for those domestic companies. Meanwhile, presently the Chinese government still plays the leading role in the electric car market of China as it holds the right of buying cars for the public use. This will grant domestic companies with more opportunities.
Toyota’s decision is based on its overestimation of the development of electric cars, but that does not mean that Toyota is going to give up the electric car business. According to Dong Changzheng, vice general manager of Toyota China, hybrid cars and electric cars are still the major development orientation of Toyota, which held onto its diversified technological route.
In truth, Toyota is rather conservative in the development of electric cars. Compared with General Motors and Nissan, Toyota always acts like a cautious boy when it comes to electric cars.
For this, Dong Yang, vice president of China Association of Automobile Industry, said that enterprises and scholars are now having a more reasonable attitude towards the development of electric cars. Presently, the promotion of electric cars is still shouldered by governments while how to put them into the market for ordinary consumers is still waiting for the answer.
Focused on Hybrid Cars
Toyota deferred the plan of massively selling electric cars highlights hybrid cars’ importance for its next-phase development. The technological research and development of electric cars, and its marketing, are not matured.
According to the data, Toyota’s eQ is a small car. It carries the new type of lithium-ion battery provided by Panasonic and can drive at 125km/h maximally. The sales price is 3.6 million Japanese yen or CNY 290 thousand. The annual sales volume is expected to be around 100 units.
It is known that this car was put into the market in 2010. Takeshi Uchiyamada, vice board chairman of Toyota, said that previously Toyota wanted to sell thousands of eQ cars per year. However, the drivable miles, cost and recharging time of eQ cannot meet the demand of the market, forcing Toyota to change the strategy two years later.
Now the market for eQ cars is limited in the US and Japan as Toyota found that only 100 units could be sold each year. Takeshi Uchiyamada admitted that Toyota’s present technology and ability of electric cars are not enough to meet the requirements of consumers, including the driving distance, product price and above all, the recharging time.
Then, hybrid cars become extremely important for Toyota’s strategy of new energy autos. It is known that the sales volume of hybrid cars of Toyota will be 1 million units around the globe. According to Toyota’s plan, the Japanese automaker is going to launch 21 types of hybrid cars by 2015, 14 of which are based on new designs.
Takeshi Uchiyamada said that each of Toyota’s existing model will have a hybrid version in the future. New technologies will be used. For example, Prius Hybrid can generate electric power by itself when braked, which can supplement the shortage of the oil engine. This is particularly useful when a driver drive his/her Prius Hybrid in big cities, where he/she always needs to brake.
Previously, it is believed that hybrid cars are just transitional products for electric cars and will not be widely accepted by consumers. But no one can tell how long the transitional period will last. The status quo is that hybrid cars more conform to market requirements before electric cars are accepted by consumers in terms of speculation and cost performance.
The Debatable Business Pattern
Cui Dongshu, deputy secretary-general of the National Association of Passenger Cars, said that Toyota’s mindset of developing electric cars is worth being borrowed and learned by Chinese companies.
“Toyota realized that it has made a mistake about electric cars at the beginning and quickly changed it,” Cui Dongshu said. “The dim outlook for the massive sale of electric cars made Toyota to put more energy into the development of hybrid cars.”
Presently, Toyota is the laureate of producing and selling the largest number of hybrid cars in the world. By the end of September, Toyota had already sold 4 million hybrid cars in the world. It has 18 kinds of hybrid passenger cars sold in 80 countries and regions, and the sales of hybrid cars took over 15% of its total sales.
But there are some experts holding opposite ideas. They think Toyota is very stupid to give up the plan of massively selling electric cars, especially in China. They take General Motors and Nissan for example: the former has already launched the extended Volt electric cars and introduced it into the Chinese market while the latter was trying to promote its Lead electric car.
Analysts believe that China owns quite a big market for electric cars and the Chinese domestic automakers are also strong players in this market without being overshadowed by foreign companies. Toyota’s withdrawal might mean more business opportunities for those domestic companies. Meanwhile, presently the Chinese government still plays the leading role in the electric car market of China as it holds the right of buying cars for the public use. This will grant domestic companies with more opportunities.