One of the world's largest car manufacturers, Japan's Toyota, is betting big on a new line of combustion engines. This is consistent with the Japanese giant's long-standing philosophy of not depositing a lot of faith in batteries, which has rested its faith on a new generation of combustion engines.
Betting on Combustion
This comes at a time when the world around has been moving towards sustainable electric vehicles.
The likes of Tesla and China's BYD have been at the forefront of the EV revolution, being the number 1 and number 2 producers of these electric vehicles, respectively. Many of the legacy brands have faltered, with the likes of Ford and General Motors burning their hands.
This also comes when the EV sales, which once zoomed significantly in recent years. However, in the post-pandemic period, the numbers slumped, especially in the past few quarters.
In fact, Tesla, for the first time since the pandemic years, when economic activity came to a standstill, saw a drop in its sales and subsequently reported a drop in its revenue as well.
Despite all the concerns, Toyota continues to be the top automobile manufacturer in the world. |
The Rise of Hybrids In Mind
According to reports, Toyota claimed on Tuesday that these aforementioned new engines will enter production around the time that updated Euorpean Union emission regulations are due to be phased in at the end of 2026.
In addition, the market for hybrid vehicles has also grown at a much faster pace than for pure EVs. Especially in markets of developing economies, including India. In the US as well, the demand for expensive EV cars, including Tesla, dropped. All this happened while the sales of budget, and midsize vehicles increased.
These factors may have come to play a crucial role in Toyota's decision to place its fortunes and resources on fuel-based engines.
Despite all the concerns, Toyota continues to be the top automobile manufacturer in the world.
As far as the company's performance on the share market is concerned, the company lost 1.68 per cent, losing 58.00 points, during the intraday trade on May 29, reaching JPY 3,390.
