Toyota to adopt 'EV-first' approach under new boss

Toyota will adopt a “BEV-first” strategy led by its luxury brand Lexus under incoming CEO Koji Sato.

Speaking for the first time since being named the successor to 13-year CEO Akio Toyoda, Sato said the company will accelerate the development of next-generation electric cars, with Lexus launching an all-new EV by 2026.

Read more: Akio Toyoda becomes Toyota chairman; Lexus boss now CEO

He said: “To deliver attractive BEVs to more customers, we must streamline the structure of the car, and – with a BEV-first mindset – we must drastically change the way we do business, from manufacturing to sales and service. Lexus will lead this transformation.”

The Toyota brand launched its first mass-market electric model – the bZ4X SUV – late last year, lagging almost two years behind key rival Volkswagen's ID 4 crossover.

Sato's statement also hints that Lexus could adopt a new sales method such as the ‘agency’ model – in which cars are sold directly to customers, rather than through dealers – championed by younger rivals Genesis and Polestar.

Although electrification will become Toyota’s priority, its cars will be developed according to regional needs, said Sato.

Citing the IMV 0 concept unveiled in Thailand last year – a small pick-up designed with a flexible rear bed to suit various applications, such as logistics and food service – he added: “By prioritising ease of customisation, we are directly addressing the needs of customers who use pick-up trucks in their work.”

This also means the company will continue to offer internal-combustion models. “The energy situation varies around the world,” said Sato.

All new Toyota models will also major in connectivity through the firm's new Arene operating system, slated to launch “in the next few years”, according to James Kuffner, head of the company’s software division, Woven Planet.