Toyota on its Hilux model: “In the very near future, we will provide these models in electric and hybrid”

– Since April, Toyota has a new global CEO: Koji Sato. In what context does your arrival take place and how relevant is it for the company?

Our new global president is just 53 years old, six years younger than me. The previous CEO, Akio Toyoda, is the son of the founder of Toyota Motor Corporation and served as CEO for 14 years. He has now delegated the general management to the young Mr. Sato. I consider that what is currently happening in the automotive industry worldwide is something very symbolic. We are in the midst of a process of change in the automotive industry.

– A change where sustainable objectives are prioritized and, in line with this, the manufacture of electric cars. With the arrival of the new CEO, are you going to be more aggressive in meeting those goals?

Our sustainability goals remain, but I think Koji Sato will take a more aggressive and fast-paced approach. For example, last year, Toyota’s production and sales was 10 million units. Koji Sato wants to maintain these figures, but additionally wants more 100% battery electric vehicles to be produced in 2024 and beyond. This strategy will begin to materialize and Koji Sato is driving that path. The sustainability strategy continues, but with a greater boost to the manufacture of new electrified cars that will enter the market more quickly.

– What is your assessment of the progress of electromobility in the region?

Toyota looks at the global market. The share of battery electric vehicles in sales is 40% in China and 30% in the US. In Europe, it reaches 25%. In these three major regions, battery electric vehicles will grow faster due to government regulation. Other electrified models, such as hybrids, will add to the increase. And although we have many countries in Latin America and the Caribbean, I don’t think electrification is going at the same pace as in China or the United States. In fact, penetration is much slower.

– What is Toyota’s share in regional sales?

Currently, Toyota in Latin America is the largest seller of electrified models, but with hybrid technology. We are selling between 40,000 and 50,000 units in total. Toyota has the largest share and I think we can easily double, triple, quadruple these numbers, because we’ll be launching more small hybrid models next year. So I think the democratization of hybrid cars will go faster in the region.

– What is, to date, the participation of the car models that Toyota sells in the region?

In Latin America, the sale of new cars is 4 million units per year. And 20% corresponds to ‘pickup’ models such as the Hilux, which are mainly marketed as diesel. Passenger vehicle, such as a Yaris or a Corolla, maintains gasoline engine technology. We hope that soon these models will be equipped with hybrid technology, that is, a gasoline engine plus a battery-powered engine, although they will not yet include battery electrics. I think hybrids will grow faster. This is my estimate for the next 5 to 10 years.

– How much progress has been made in the electrification of the Hilux model?

The Hilux model is one of the best sellers in the region. So far, we have models with diesel and gasoline engines, but our plan is for the lineup to be equipped with battery electrics and diesel-powered electrified hybrids as well. It will not arrive today, but in the very near future we will provide Latin American customers with these models for Hilux. Unfortunately, battery electric vehicles are still very expensive, and since the Hilux is a large model, it requires a strong battery, which is very expensive. Therefore, the price of the battery electric Hilux will not be as accessible to the general customer. Our clients will probably be in the mining sector or in government companies.

– What are your sales prospects for this year in the region?

The Latin American demand has been very high in 2022. The manufacturers could not produce as required by the demand, so the supply was much lower than the demand. And this year, from January to June, we are producing as much as possible and at full speed. In line with this, sales have grown a lot. Already in the last two or three months, we are feeling a slowdown. We believe that by the end of the year, the demand will reach a stable level.

– And in the particular case of the Peruvian market?

Peru has a very similar behavior to Latin America. The strong demand of last year was maintained this first quarter. However, due to local factors, it began to slow down. I don’t think there will be a lot of growth at the end of the year, although I don’t think demand from Peru will go down. We maintain our sales targets from the beginning of the year with 38,000 units. Therefore, we expect to grow, compared to 2022, around 9%.