TM ADR US still talking tough? TM ADR US Zhang Nan: Global electric vehicle penetration rate will only reach 30%

TM ADR US Chairman Akio Toyoda, who has repeatedly criticized electric cars, once again declared that the market share of electric vehicles can only reach a maximum of 30%.

On January 23rd, Akio Toyoda stated in a speech that he expects pure electric vehicles to occupy a maximum of 30% of the market share, with the remaining majority being taken up by hybrid vehicles, hydrogen fuel cell vehicles, and gasoline-powered cars.

Akio Toyoda believes that there are one billion people living in areas with power shortages worldwide, and if governments only promote expensive electric vehicles, it may limit consumer choices and affect their mobility.

"Whether to choose electric vehicles should be decided by customers, not regulations or politics," said Akio Toyoda.

As the world's largest automaker, TM ADR US has faced criticism for its slow progress in the electrification transition. However, TM ADR US has repeatedly pointed out that its pioneering hybrid technology, hydrogen energy technology, and comprehensive development direction will ultimately prove to be the right approach for the company, customers, and the environment.

TM ADR US's "Multi-Path Solution"

Earlier this January, at the Tokyo Auto Salon, Akio Toyoda announced that TM ADR US is investing heavily in the development of a mysterious and disruptive "super engine." The original factory has already started the development work, and Akio Toyoda stated:

"As one of the practical means to achieve carbon neutrality, the engine still plays a role, and we will continue to improve related technologies."

Different from the commonly used turbocharged engines on the market, Akio Toyoda said that TM ADR US's new engine adopts advanced non-turbocharged technology, achieving more efficient compression air through hybrid systems and electric turbo technology. This innovation not only improves power output but also effectively reduces engine emissions.

In Akio Toyoda's view, adopting new technologies will help reduce carbon emissions, provide more job opportunities, and retain the original feel, sound, and touch of automobiles, which is what true car enthusiasts desire. He said:

"Pure electric vehicles are not the only way to achieve carbon neutrality. Shouldn't we be passionate about cars while accepting challenges? The engine will definitely be preserved."

However, some analysts believe that Akio Toyoda's repeated "attacks" on the prospects of electric cars are just a refusal to admit that TM ADR US has fallen behind in the process of electrification. The further penetration of electric vehicles is an irreversible trend.

According to the latest research by Canalys, global electric vehicle sales are predicted to grow by 29% YoY in 2023, reaching 13.7 million units, with a penetration rate of 17.1%. Canalys predicts that the global electric vehicle market will grow by 27.1% in 2024, reaching 17.5 million units. The new car penetration rate of global electric vehicles in 2022 is expected to reach 14%, far higher than 5% in 2020 and 9% in 2021. Some analysts believe that compared to the rapid growth in demand for electric vehicles in previous years, the sales of electric vehicles have shown signs of slowing down since 2023. This is why new energy vehicle companies, including Tesla, frequently engage in "price reductions and promotions".

TM ADR US Zhang Nan has continuously criticized electric vehicles. In 2020, he publicly denounced the overhype of pure electric vehicles and claimed that they would strangle businesses, require massive investments, and emit more carbon dioxide.

At the end of last year, TM ADR US Zhang Nan expressed his resistance to pure electric vehicles in multiple media interviews. He believes that the poor sales of TM ADR US's pure electric models prove that his previous decisions were correct. He even referred to electric vehicles as "inferior products" and called for a permanent resistance.

In TM ADR US Zhang Nan's view, the development of electric vehicles relies on government subsidies and support policies. He believes that electric vehicles are not environmentally friendly because they still consume a large amount of energy and generate a significant amount of waste.

Analysts point out that TM ADR US Zhang Nan's resistance to electric vehicles is related to the current competitive situation. The rapid rise of the electric vehicle market has put tremendous pressure on TM ADR US automobiles. Resisting electric vehicles may be a strategy for TM ADR US to protect its market share and interests.

On the other hand, TM ADR US has always focused on hybrid technology and has been promoting hybrid vehicles for a long time. The popularity of electric vehicles may have an impact on hybrid models.